Ethereum co-founder Vitalik Buterin posted a warning about Trump, political meme coins, and the current state of the crypto industry.
He noted that Gensler left a regulatory loophole in distinguishing governance tokens from securities, which has ushered in a wave of bad actors.
Buterin vs Trump: Fighting for the Future of Crypto
Vitalik Buterin, co-founder of Ethereum, has shown increasing concern about Trump and other political coins. In lengthy social media mailBoren highlighted a long view from the crypto industry, claiming that we are “entering a new order” for the past year.
He noted that Crypto’s institutional acceptance has allowed bad actors to flourish:
“It is now time to talk about the fact that large-scale political currencies cross an additional line: they are not only sources of pleasure, the harm of which is at most on mistakes made by voluntary participants, they are vehicles for unlimited political bribery, including from foreign foreign countries.” “Boren claimed.
For Perrin, Trump’s firing was a watershed moment. Nearly 94% of the tokens are held by 40 wallets, and scammers have already stolen nearly $1 billion, capitalizing on the hype around Trump and Melania.
Normally, American presidents cannot conduct private business in the office. Therefore, Trump’s meme coin has created massive concerns, even outside the crypto industry.
However, Boren did not place all the blame on Trump or any other prominent meme issuer. He noted that former SEC Chairman Gary Gensler created a loophole in securities laws by designating governance tokens as a separate concept.
In Boren’s view, Gensler “should not be baptized a hero, even among crypto-skeptics,” because of this vulnerability.
The former SEC chair has been widely criticized by the crypto industry for his regulatory loads, even after approving a Bitcoin ETF. Gensler has never provided regulatory clarity or closed loopholes in existing regulations.
However, with the benefit of hindsight, Boren claims that Crypto’s response of “part compliance, part rebellion” led directly to Trump. However, he sees a way forward.
“There is a bright future for capital allocation mechanisms to be built. Potentially, we can come up with ways to ensure alignment with community desires as well as protect important values like privacy, security, open standards, and open source. Acceleration comes either way. Our job is to choose the brightest vector possible, “I finish.
Boren noted that the entire Defi community has a responsibility to educate newcomers on long-term fulfillment and wealth building, move back toward honest token-based fundraising, and proactively defend the space against the self-destructive logic of the market.
He proposed a “D/ACC” or “Defensive Acceleration” philosophy going forward.
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