Vitalik Buterin Rips Current State of Cryptocurrency Regulation, Calls It 'Anρχo-Tyranny”

Vitalik Buterin, co-founder of Ethereum ETH/USD, recently expressed his concerns over the current state of cryptocurrency regulation, particularly in the United States.

Vitalik Buterin, co-founder of Ethereum (CRYPTO: ETH), has voiced his concerns over the current state of cryptocurrency regulation in the United States, which he described as "anarcho-tyranny."

What Happened: Buterin, in response to a user on decentralized social network Warpast, highlighted the disparities in how companies offering potential returns without clear explanations are allowed to operate freely, while those explicitly outlining returns and customer rights are penalized for being "a security."

"The incentive gradient that this “anarcho-tyranny” creates ends up worse for the space than either plain anarchy or plain tyranny," added the cryptocurrency technologist.

Although Buterin did not directly name any projects, his comments appeared to be aimed at memecoins, especially those launched by celebrities. He has previously questioned the motive behind these endeavors.

"I'd rather the industry develop in a direction where launching a coin without a long-term aim welcomes more scrutiny, while projects with a clear long-term vision are encouraged," Buterin noted.

Buterin's comments come as ConsenSys, a blockchain software company, is being sued by the SEC for allegedly breaking federal securities laws. The SEC claims that ConsenSys failed to register as a broker and did not register the offer and sale of securities, leading to substantial investor protection concerns.

Interestingly, the SEC recently closed an investigation into whether Ether is a security, marking a significant win for the cryptocurrency.

The SEC’s decision comes after it cleared asset managers to launch spot exchange-traded funds tracking the spot price of Ether in May.

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