Vitalik Buterin, co-founder of Ethereum, the second largest cryptocurrency project by market capitalization, has taken a stance on recent actions taken by the US Securities and Exchange Commission (SEC) in the area of enforcement against cryptocurrencies. . Buterin noted how projects like Solana are included in these lawsuits and said the real competition is in a “centralized world.”
Vitalik Buterin talks about SEC cryptocurrency enforcement action
Ethereum co-founder Vitalik Buterin has shared his thoughts on recent crypto enforcement actions taken by the U.S. Securities and Exchange Commission (SEC) against exchanges and crypto projects. When asked Matt Hwang, co-founder of California-based cryptocurrency investment firm Paradigm, his thoughts on the issue, Buterin replied: answered:
I feel bad for Solana Other projects have also been hit in this way. They don't deserve it, and if Ethereum ends up “winning” with all other blockchains being kicked off the exchange, it won't be an honorable win, and in the long run it probably won't. It wouldn't even be a victory.
Buterin further warned of the possible purpose behind these actions, saying, “The real competition is not other chains, but the rapidly expanding forces that are being thrust upon us as we speak. “It's a centralized world,” he said, wishing other crypto projects a “fair outcome.” this situation.
Ethereum, Solana, and their classification
Solana, Cardano, Polygon, BNB, and other cryptocurrency projects are included in the SEC's current lawsuit against Coinbase and Binance, two of the largest cryptocurrency exchanges on the market. SOL, the native token of Solana, a smart contract-enabled cryptocurrency project, has been labeled as a security in these processes, threatening its permanence and making it available to US-based exchanges without prior registration. Being listed is at risk.
But the Solana Foundation, whose mission is to “help build the Solana Protocol into the world's most censorship-resistant network,” has questioned the validity of the SEC's vision. states It “does not agree with the characterization of SOL as a security.”
Ether, the native token of the Ethereum network, is also part of this security classification discussion. In a recent Congressional hearing, SEC Chairman Gary Gensler did not answer a direct question about whether Ether constitutes a security for the commission.
However, in a now infamous 2018 speech, former SEC official William Hinman detailed that, based on his understanding, “the current offering or sale of Ether is not a securities transaction.” On March 9, 2023, New York State Attorney General Letitia James filed a lawsuit against KuCoin, with prosecutors classifying Ether as a security.
JPMorgan analyst Nikolaos Panigirtzoglou said the release of the Hinman dossier, a group of internal memos and emails showing discussions held by SEC officials prior to this speech, has led to the dominance of Ethereum as a commodity. The authors explain that this could lead to a decentralization boom.
What do you think about Vitalik Buterin's stance on SEC enforcement actions against crypto projects? Let us know 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/
