Vitalik Buterin shared his thoughts on regulating the cryptosphere

Ethereum project co-founder Vitalik Buterin told about current problems of regulation of the cryptocurrency sphere in general and in the USA in particular. According to him, opaque projects without specific value were in a more advantageous position than well-thought-out and carefully organized ones.

This is how Buterin commented on the publication of a member of the Ethereum Foundation under the pseudonym Jason on the Warpcast platform. He referred to the statement of the blockchain co-founder in X (formerly Twitter) from October 2022.

That month passed A two-hour debate between former FTX CEO Sam Bankman-Fried (SBF) and ShapeShift CEO Erik Voorhees on the Bankless podcast.

Following these, the SBF faced a barrage of criticism. It proposed “voluntary standards” that it believed could simplify regulation of the industry. In particular, the SBF supported oversight of developers of interfaces for accessing DeFi projects.

In response, Buterin proposed his own “rules”, which included:

• leverage restrictions;
• audit report of the smart contract source code and the project as a whole;
• higher entry threshold instead of minimum capital requirements.

In response, Buterin said that the main problem with regulating the industry in general and in the United States in particular remains a selective approach. According to the expert, projects with minimal value operate freely on the market, while others, well-thought-out and carefully organized, face sanctions.

Here, Buterin probably referred to the US Securities and Exchange Commission’s lawsuit against Consensys. The latter is the developer of the MetaMask crypto wallet.

Earlier, the co-founder of Ethereum criticized memcoins. He said some of them have no value to the ecosystem. It is possible that in his publication he had precisely such projects in mind.