- In June 2023, the US SEC labelled the SOL token as an unregistered security in separate lawsuit files.
- Vitalik Buterin, Ethereum’s CEO, has openly stated that the efforts of the SEC are working against the ecosystem.
- Ethereum has provided a conducive ecosystem for at least 193 Defi projects listed under their blockchain systems, and 164 are built using their facilities.
One of the major plagues of the web3 industry is the lack of undefined crypto regulations. Its volatile and anonymous nature has made it more difficult to legally bind the use of crypto in a way that does not infringe on its primary principle. Unfortunately, since the FTX crash, the hund of crypto illegalities has imposed more negative than positive outcomes. Its recent lawsuits in Binance and Coinbase have stirred the entire franchise causing a massive backlash from users and organizations. However, its late take on the Solana exchange has stirred up another crypto titan. Ethereum’s CEO, Vitalik Buterin, has called out the crypto regulatory bodies for their approach to crypto regulations.
Vitalik Buterin places SEC in the spotlight
Recently all eyes within the web3 industry have been focused on the grand legal battle between the top exchanges and the US Securities Exchange Commission. However, amid the chaos of lawsuits against Binance and Coinbase, the regulatory body took up another opponent, the Solana Exchange.
In June 2023, the US SEC labelled the SOL token as security in separate lawsuit files. This occurred amid its court sittings with Binance and Coinbase. Unfortunately, this caused a significant backlash from the Solana Foundation and its users, who took the fight to Twitter. According to their response, the Solana Foundation heavily disagrees with categorizing their native token as a security. They further welcomed any engagements with their respective policymakers to elaborate on the legal clarity in the digital assets space.
The Solana Foundation launched its native utility token in March 2020, taking the entire ecosystem by a wave. Its ties with the second largest crypto token, Ether, have gained a substantial audience that grew its decentralized network exponentially. The SOL token has all the basic functionalities of any native token and a few additional features that have aided its stance over peers.
Also, Read Ethereum in Africa; A plethora of opportunities.
On June 5th and 6th, the SEC labelled the SOL token as an unregistered security when facing off against Binance and Coinbase. The Solnaa Foundation replied, “This classification is significant because it subjects Solana and associated activities to a different set of regulations and compliance requirements. We are actively engaging with legal experts and are in communication with the SEC to understand and address their concerns.”
Fortunately, this sudden move has stirred up Ethereum’s CEO, Vitalik Buterin, who openly called out SEC on their efforts to “enforce” crypto regulations.
Vitalik Buterin defends the ecosystem
Vitalik Buterin, Ethereum’s CEO, has openly stated that the efforts of the SEC are working against the ecosystem. When asked about his thoughts, he said, “I feel bad that Solana and other projects are getting hit this way. They don’t deserve it. Even if Ethereum ends up winning, through all other blockchains getting kicked off exchanges, it is not an honourable way to win. In the long term, it probably isn’t even a victory.“
The entire vision of Vitalik Buteri was never to create a crypto coin that outvalued Bitcoin. Instead, it was to create an ecosystem where Web3 would thrive. This is the main reason why Ethereum’s CEO has developed a blockchain environment, promoting developers. Today Vitalik Buterin has provided a conducive ecosystem for at least 193 Defi projects listed under their blockchain systems, and 164 are built using their facilities.
Ethereum has not only improved upon Bitcoin’s native blockchain system but also significantly aided the growth of the industry. The lack of standard crypto regulations has presented some issues for the franchise, but ultimately, its limited direct involvement with regulatory bodies has saved it from plenty of problems.
Thus with the recent legal attacks from SEC, Ethereum had to step in. According to Buterin, the actions of the SEC might be a front to ulterior motives. He clarified, “The real competition is not other chains, it’s the rapidly expanding centralized world that is imposing itself on us as we speak.“
Unfortunately, such claims only clarify the hypothesis we at Web3Africa.news have deduced in previous articles. In a nutshell, central entities could never control the crypto ecosystem. Developers have made attempts to merge both worlds through several platforms and hybrid blockchain systems, but its applicability is limited. When viewing the crypto industry, the entire concept of Bitcoin is to forgo traditional financial institutions and empower the ordinary man.
Unfortunately, since the SEC has dragged in one of Ethereum’s projects in its lawsuits, it has gained another formidable opponent. Vitalik Buterin is an icon within the entire web3 ecosystem through the several initiatives Ethereum has taken to improve the ecosystem.
Also, Read the Far-reaching effects of aggressive crypto market regulation.
To place the sheer influence of Ethereum, we only need to look at its recent development; Proof of Stake. Ethereum was the first exchange to develop the first functional POS crypto coin, the Wrapped Peercoin. Its numerous research on crypto and blockchain has ushered in numerous innovations within the industry. The SEC might initially have advocated for crypto regulations, but it may have deviated from its initial goal.