In a recent statement on Twitter, Vitalik Buterin, co-founder of Ethereum, expressed his concern over the regulatory targeting of crypto projects, including Solana, the biggest rival to his own blockchain. Buterin’s comments came in response to a query by Matt Huang, co-founder of Paradigm, regarding his opinion on America’s crypto policy approach.
“The one comment I’ll make is that I feel bad that Solana and other projects are getting hit in this way,” Buterin tweeted. “They don’t deserve it, and if Ethereum ends up ‘winning’ through all other blockchains getting kicked off exchanges, that’s not an honorable way to win, and in the long term probably isn’t even a victory.”
Buterin emphasized that the real competition should not be seen as other chains but rather the “rapidly expanding centralized world that is imposing itself on us as we speak.”
The US Securities and Exchange Commission (SEC) has adopted a stringent stance on the cryptocurrency industry this year, imposing fines on major exchanges such as Coinbase, Binance, and Kraken. The lawsuits primarily revolve around the allegation that many exchanges are selling unregistered securities. Pooled staking products, which enable users to stake their Ethereum on the network and earn rewards, have also come under scrutiny.
While SEC Chairman Gary Gensler has long maintained that most digital coins and tokens are unregistered securities, he considers Bitcoin to be a commodity. Although Gensler’s stance on Ethereum remains unclear, the Commodities and Futures Trading Commission (CFTC) has deemed the asset to be a commodity.
In its recent complaint against Binance, the SEC classified SOL and several other cryptocurrencies as unregistered securities. The regulatory targeting of Solana and other projects has raised concerns within the crypto community regarding the fairness of competition and the impact on the industry as a whole.
The remarks by Buterin highlight the need for a balanced and thoughtful regulatory approach that fosters innovation and competition within the crypto sector. As the industry continues to evolve, stakeholders are eager for regulatory bodies to strike a delicate balance between protecting investors and allowing space for technological advancements and decentralized networks to flourish.