Buterin Talks About Crypto Regulation, Says He’s ‘Pretty Happy’ ETFs Are Being Delayed By DailyCoin

Ethereum co-founder Vitalik Buterin, who shared his opinion on crypto regulation, declared that he is “quite happy” that exchange-traded funds (ETFs) are being delayed.

Buterin on crypto regulation

In a long thread on Twitter, Vitalik Buterin discussed how regulations would affect crypto. According to Buterin, all regulations focus on either consumer protection or making it difficult for bad actors to move large amounts of money around.

Buterin showed support for regulations that could make it easier for the industry to reach mainstream adoption. However, he notes that regulations that limit the mainstream growth of crypto are just as bad as those regulations that harm crypto projects internally.

He also responded to the proposed KYC for Decentralized Finance (DeFi) frontends put forward by FTX founder Sam Bankman-Fried. According to him, KYC for DeFi is pointless and would only annoy users. In sharing his opinion on DeFi regulation, Buterin said:

Rules on defi interfaces that *might* be more useful might include: (i) limitations on leverage (ii) requiring transparency about what audits, FV or other security checks were performed on contract code (iii) closed use of knowledge-based tests instead of plutocratic minimum net worth rules

— vitalik.eth (@VitalikButerin) October 30, 2022

The crypto industry needs to mature

Buterin, who shared what he called his “controversial view”, said he is “quite happy” that the US Securities and Exchange Commission (SEC) has continued to delay the launch of a crypto ETF.

Buterin believes that the crypto industry should not put too much effort into attracting institutional capital “at full speed”. He believes the industry must become more mature before institutional adoption becomes a possibility.

On the other side

• Buterin notes that institutional capital can cause crypto to lose its censorship resistance and decentralization. These are two things his project, , has recently been accused of.

Why you should care

Regulation continues to be argued as one of the most important factors that can make crypto either more palatable for mainstream adoption or limit its growth.

Read about SBF’s proposal for a framework in:

Sam Bankman-Fried Publishes Crypto “Norms Manual”

Ethereum’s censorship resistance and decentralization struggle are covered below:

Is PoS Ethereum More Centralized? Two platforms add 42% of Ethereum (ETH) blocks after merger

See the original on DailyCoin