- Regulators in the U.S have taken a confusing and inconsistent approach towards the industry.
- Buterin did hint that enacting legislation beneficial to the crypto sector is only half the fight.
Ethereum co-founder Vitalik Buterin, known for his outspokenness, recently voiced his displeasure with the present regulatory climate around cryptocurrencies and proposed a foolproof solution. In a response to a user on the Farcaster-based social media network Warpcast, Buterin laid out the present regulatory landscape and how it has effectively cornered honest cryptocurrency developers.
As far as anarchy is concerned, there seems to be an infinite supply of con artists, hoaxes, and unfounded promoters flooding sharing platforms and social media. To address the issue of “useless” crypto products and services, Buterin has before proposed three solutions.
Key Suggestions
Furthermore, some of the suggestions made here include putting constraints on leverage. Also, making audits and transparency mandatory, and using knowledge tests to gate use.
Limits on the leverage of cryptocurrency projects and requirements for auditing and transparency reporting should be considered as matters of policy. Even though it is not yet clear how knowledge assessments about cryptocurrencies could be applied at the regulatory or individual or corporate levels.
Moreover, regulators in the United States have taken what many in the cryptocurrency community regard as a confusing and inconsistent approach to regulating the industry. And the country’s large crypto user base doesn’t help matters.
According to Buterin, it would be more risky to issue a token without providing a clear long-term story for why its economic value will maintain or rise. Rather than to provide the most safeguards to projects and businesses without a long-term vision or plan. Also, Buterin did hint that enacting legislation beneficial to the crypto sector is only half the fight.
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