ETH Vitalik Buterin Shares His Thoughts About What Are Proper Crypto Regulations

ETH Vitalik Buterin Shares His Thoughts About What Are Proper Crypto Regulations.

A co-founder of Ethereum, Vitalik Buterin, offered his views on what regulations should-and should not-be included in the crypto industry’s regulatory debate Sunday.

Regulations Could be A Double-edged Sword

Cryptocurrency regulation could make cryptocurrencies more acceptable to mainstream financial institutions and legitimize them as assets.

However, new rules and policies could also change the DNA of the industry, particularly when it comes to censorship resistance and decentralization. According to Buterin, preserving the latter should take precedence.

“I don’t think we should be enthusiastically pursuing large institutional capital at full speed,” the Co-founder said.

“Regulation that leaves the crypto space free to act internally but makes it harder for crypto projects to reach the mainstream is much less bad than regulation that intrudes on how crypto works internally,” he added.

Since the Winklevoss twins filed for a Bitcoin ETF-like trust in 2013, segments of the crypto industry have been pursuing institutional capital.

Although futures-based Bitcoin ETFs trade on the Chicago Mercantile Exchange, the SEC has been slow to approve spot-based Bitcoin ETFs

“Another maybe-controversial take of mine is that I don’t think we should be enthusiastically pursuing large institutional capital at full speed. I’m actually kinda happy a lot of the ETFs are getting delayed. The ecosystem needs time to mature before we get even more attention,” he said.

Another maybe-controversial take of mine is that I don't think we should be enthusiastically pursuing large institutional capital at full speed. I'm actually kinda happy a lot of the ETFs are getting delayed. The ecosystem needs time to mature before we get even more attention.

— vitalik.eth (@VitalikButerin) October 30, 2022

His policy goals for the crypto industry include better consumer protection and stemming illicit cryptocurrency flows—which are not limited to the DeFi sector.

The Community Response

SBF responded to Buterin’s points, saying they “are pretty reasonable” and expressed willingness to host the ethereum co-founder in Washington DC so he can provide nuanced input.

“I think that policymakers/regulators would find it pretty interesting to hear from @VitalikButerin. He’s very different from the average person in DC, but in a kinda refreshing way—calmly and thoughtfully saying what he thinks,” SBF said.

actually would love to do that — I think that policymakers/regulators would find it pretty interesting to hear from @VitalikButerin

he's *very* different from the average person in DC, but in a kinda refreshing way–calmly and thoughtfully saying what he thinks

— SBF (@SBF_FTX) October 30, 2022

Also, cryptocurrency investor Ryan Sean Adams invited Buterin to share his thoughts at Bankless, a crypto media project and DAO.

“Yes. And if you do, advanced invite to come on @BanklessHQ and share!” said the investor.

For more info regarding Crypto Alpha and NFTs Alpha.  Always follow us on Twitter and Instagram.