Vitalik Buterin Concerned About US Crypto Regulation

Ethereum (ETH) creator Vitalik Buterin has expressed apprehension regarding the approach of the United States towards cryptocurrency regulation, specifically highlighting the potential consequences for projects like Solana. In a tweet, Buterin expressed sympathy for the affected projects and cautioned against excluding other blockchains from exchanges, stating that such a victory for Ethereum would not be morally or sustainably advantageous in the long run.

Solana (SOL) was classified as a security in the recent Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase. This categorization was not limited to Solana alone, as several other tokens, including cardano (ADA), Polygon’s token MATIC, filecoin (FIL), the Sandbox’s SAND, and Axie Infinity (AXS), were also deemed securities in these lawsuits.

Interestingly, while these tokens faced scrutiny, ether remained unaffected by the SEC’s crackdown. This lack of action on ether did not come as a surprise to many observers. During his testimony before the House Financial Services Committee in April, SEC Chair Gary Gensler declined to definitively classify Ether as a security or a commodity, emphasizing that it depends on the facts and the law. Despite some viewing this as a win for Ethereum, Vitalik Buterin conveyed his sympathy towards projects like Solana facing adverse consequences. He expressed regret for their unfavorable circumstances in a message addressed to his nearly 5 million Twitter followers.

According to Buterin, the true competition for the blockchain industry lies not in rival chains but rather in the rapidly growing centralized sector exerting its influence. He stressed the significance of acknowledging this point, emphasizing that the industry should focus not only on competing against other chains but also on navigating the challenges posed by the expanding centralized sector. At present, Ethereum is experiencing a 1.95% increase in the past 24 hours, with its trading price surpassing $1,900.

As the outcome of the lawsuit remains largely unknown, it is noteworthy that Buterin’s tweet coincided with Coinbase’s comprehensive 177-page response to the SEC’s complaint. Coinbase submitted its answer 40 days ahead of the August 7 deadline, outlining legal arguments to seek dismissal of the case and potentially urging regulatory authorities to reconsider the classification of projects like Solana and Ethereum.