US crypto regulation promotes “useless” tokens

Vitalik Buterin, the founder of Ethereum, has criticized the US regulatory regime, particularly the classification of utility tokens as securities.

Buterin argues that this approach discourages meaningful crypto projects and encourages the creation of “useless and unclear” tokens.

Buterin advocates for balanced crypto regulations to promote growth

The co-founder of Ethereum believes that the current regulatory system has kept well-intentioned cryptocurrency developers at bay. According to Buterin, this approach will harm the crypto industry and may eventually lead to anarchy or tyranny.

“If you do something worthless, or ask people to give you money, you're a vague reference that you can get back better, you're free and clear, but if you try to give your customers a clear story of where they're coming back and what they're entitled to, then you're screwed because you're ‘security'.” ” said the battery.

Instead, issuing a token without a clear long-term history of its economic value threatens a more risky future, while projects that provide such a history and following best practices are safer. However, achieving this requires “good faith engagement from regulators and the industry”.

“I think we'd better go the opposite way. It's much more dangerous to _token” without a clear long-term history of why the economic value will continue or increase, and if you _do, follow that long-term history and basic best practices, then you'll be fine,” Buterin said.

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Buterin's position echoes several industry leaders who have criticized the US government's handling of the emerging crypto sector. Advocates push for regulations tailored to the unique nature of crypto and decentralized platforms. They believe this approach is critical to protecting investors and fostering technological progress without excessive restrictions.

However, the SEC, chaired by Gary Gensler, criticized industry participants for not complying with existing securities laws. As a result, the financial regulator has declared major crypto assets such as Solana and Cardano Securities. Additionally, it has filed legal actions against major crypto companies such as Coinbase, Binance, and Kraken that allegedly violate local laws on their crypto products.

Read more: Who is Gary Gensler? Everything you need to know about the SEC chairman

These issues have made crypto a significant political topic in the upcoming November election. Crypto companies donate to crypto-related political organizations to support crypto-aligned candidates. These efforts have achieved great results, former President Donald Trump has raised his position in the polls in favor of crypto.