Ethereum co-founder Vitalik Buterin weighs in on upcoming regulations
The founder of Ethereum questions the crypto sector and the general attitude toward institutional investors.
The founder of Ethereum questions the crypto sector and the general attitude toward institutional investors. He also weighed in on the ongoing debate about crypto regulation in a View post on X. In the tweet, he warns about the 'desire' for the 'big, institutional capital'. He’s kind of glad about the delay of the many crypto ETFs.
In his view, the ecosystem needs time to mature before it gets more attention. According to Buterin, the crypto sector should stay 'open' even with regulation. The processes may take longer as long as the regulations don't clash with internal matters.
His remarks come after new crypto rules leaked by the U.S. Congress last week. FTX CEO Sam Bankman-Fried drew sharp criticism from the crypto community when he laid out his own sector regulations. Centralized crypto firms' involvement in drafting the laws was viewed with suspicion by some DeFi experts.
Buterin sees some of Fried's proposals as pointless. A prominent example is KYC (know-your-customer) on DeFi platforms. According to Buterin, KYC won’t stop hacker attacks the way Fried suggested.
Instead, the Ethereum founder values a knowledge check for users before they use complex financial products on decentralized platforms. Additionally, crypto regulation should, in his view, include privacy-preserving procedures, such as verification through so-called zero-knowledge proofs.
