According to the co-founder of Ethereum, we would all be better off with either anarchy or tyranny, but not both.
Vitalik Buterin, the outspoken co-founder of Ethereum, recently expressed his frustration with the current state of cryptocurrency regulation and proposed a viable solution.
Buterin told a user on Warpcast, a social media site based on the Farcaster protocol, that current moves to regulate cryptocurrency developers have pretty much put honest developers in a corner:
“The primary obstacle to crypto regulation, particularly in the United States, has always been the phenomenon that if one engages in an activity that is either useless or involves soliciting money in exchange for vague references to potential returns, they are liberated. However, if one attempts to provide their customers with a clear narrative regarding the source of returns and the rights they possess, they are at a disadvantage because they are considered “security.” The incentive gradient that this “anarcho-tyranny” generates is ultimately detrimental to the space, surpassing that of either plain anarchy or plain tyranny.”
On the chaos side of things, there seems to be an endless supply of bad people, scams, and people spreading false information on social media and sharing sites.
Buterin had previously devised three recommendations that were purported to address the issue of “useless” cryptocurrency products and services.
Although the implementation of cryptocurrency knowledge tests at the regulatory, individual, or corporate levels remains uncertain, it is probable that it would be a matter of policy to establish auditing and transparency reporting requirements and to restrict the leverage of cryptocurrency projects.
Regrettably, the cryptocurrency community appears to believe that the United States has an excessive number of cryptocurrency consumers and a regulation approach that is best characterized as nebulous or irregular.
According to Buterin, it would be preferable to “move to the opposite situation,” in which the riskiest course of action is to issue a token without providing a clear long-term narrative for why it will maintain or increase in economic value, rather than providing the most protections to companies and projects without a long-term vision or plan.
Nevertheless, Buterin also hinted that the implementation of regulations that benefit the cryptocurrency industry is only one aspect of the conflict: “In reality, achieving this will necessitate genuine cooperation from both regulators and industry.”
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