Vitalik Buterin, a co-creator of Ethereum, the second largest cryptocurrency initiative by market capitalization, expressed his views on the recent measures taken by the U.S. Securities and Exchange Commission (SEC) regarding enforcement actions against the crypto industry. Buterin pointed out that projects such as Solana were implicated in these legal proceedings and affirmed that the genuine competition lies within the “centralized realm.”
Vitalik Buterin Speaks on SEC’s Crypto Enforcement Actions
Vitalik Buterin, a co-creator of Ethereum, has shared his insights regarding the recent enforcement measures the U.S. Securities and Exchange Commission (SEC) is pursuing against trading platforms and cryptocurrency initiatives. In response to a query posed by Matt Huang, co-founder of the California-based crypto investment firm Paradigm, Buterin replied:
I regret that Solana and other initiatives are being affected in this manner. They don’t merit it, and if ethereum ends up ‘prevailing’ due to all other blockchains being removed from exchanges, that’s not an admirable way to succeed, and in the long run, it may not even constitute a win.
Additionally, Buterin cautioned about the potential intentions behind these actions, asserting that “the true rivalry is not with other chains, it’s the swiftly evolving centralized domain that is asserting itself upon us as we speak,” wishing other crypto initiatives a “just outcome” in this circumstance.
Ethereum, Solana, and Their Classification
Solana, Cardano, Polygon, BNB, and various other cryptocurrency initiatives have been incorporated in the ongoing legal battles that the SEC is engaged in against Coinbase and Binance, two of the largest cryptocurrency exchanges in the sector. SOL, the native token of Solana, a smart-contract compatible cryptocurrency initiative, has been designated a security within these proceedings, jeopardizing its stability and listing on U.S.-based exchanges without prior registration.
Nevertheless, the Solana Foundation, whose objective is to “assist in developing the Solana protocol into the most censorship-resistant network in the world,” has challenged the legitimacy of the SEC’s perspective, asserting it “disagrees with the classification of SOL as a security.”
Ether, the native token of the Ethereum network, is also involved in this securities classification dispute. During a recent congressional hearing, SEC chairman Gary Gensler did not respond to a direct inquiry regarding whether ether qualifies as a security in the view of the commission or not.
However, in his now well-known 2018 address, former SEC official William Hinman elucidated that based on his comprehension, “current offers and sales of ether are not securities transactions.” On March 9, 2023, New York attorney general Letitia James initiated a lawsuit against Kucoin, in which the prosecutor designated ether as a security.
According to JPMorgan analyst Nikolaos Panigirtzoglou, the release of the Hinman documents, a collection of internal memos and emails detailing the discussions SEC officials engaged in before this speech, heightens the likelihood of ethereum being deemed a commodity, elaborating that these may catalyze a surge for decentralization.
What are your thoughts on Vitalik Buterin’s position on the SEC’s enforcement actions towards crypto initiatives? Share your views in the comments section below.
https://news.bitcoin.com/ethereum-co-founder-vitalik-buterin-on-sec-crypto-enforcement-actions-the-real-competition-is-the-centralized-world/