Buterin criticizes US crypto policy’s detrimental impact on projects like Solana

Ethereum (ETH) creator Vitalik Buterin has expressed concern about the US approach to crypto regulation, particularly the impact on projects like Solana.

In a tweet, Buterin expressed sympathy for the affected projects and stated that if Ethereum were to prevail by excluding other blockchains from exchanges, it would not be a moral or sustainable victory in the long run.

Solana (SOL) was classified as a security in the SEC’s lawsuit against both Binance and Coinbase. This categorization was not exclusive to Solana, as several other tokens, including cardano (ADA), Polygon’s token MATIC, filecoin (FIL), the Sandbox’s SAND, and Axie Infinity (AXS), were also deemed securities in these suits.

Interestingly, while these tokens faced scrutiny, ether remained unaffected by the SEC’s crackdown. This lack of action on ether didn’t come as a surprise to many observers.

In April, during his testimony before the House Financial Services Committee, SEC Chair Gary Gensler declined to provide a definitive answer regarding whether Ether should be classified as a security or a commodity, back in April. At the time, Gensler continued to repeat that it depends on the facts and the law.

Although some considered this a win for Ethereum, in a message addressed to his nearly 5 million Twitter followers, Ethereum co-founder Vitalik Buterin expressed his sympathy towards projects like Solana and others facing adverse consequences. Acknowledging the challenges they are currently encountering, Buterin expressed his regret for their unfavorable circumstances.

According to Ethereum co-founder Vitalik Buterin, the actual competition faced by the blockchain industry lies not in rival chains but rather in the fast-growing centralized world that is exerting its influence. Buterin emphasized the significance of this point, highlighting that the industry’s focus should not solely be on competing against other chains but also on navigating the challenges posed by the expanding centralized sector.

Ethereum has been up 1.95% in the recent 24 hours, trading at over $1,900.

With the outcome of the lawsuit still largely unknown, it is worth noting that this tweet came out around the same time as Coinbase fired back at the SEC with a comprehensive 177-page Answer to the Complaint ahead of schedule. 

Rather than waiting until the August 7 deadline, Coinbase submitted its response 40 days in advance. The answer included a comprehensive preliminary statement outlining Coinbase’s legal arguments to seek dismissal of the case and potentially pushing regulatory authorities to reconsider the classification of Solana and Ethereum, among other affected projects.