Ethereum (
ETH
) innovator Vitalik Buterin has raised concerns about the current regulatory climate for cryptocurrencies, describing it as an “anarcho-tyranny” that is detrimental to the industry. In a post on the decentralized social network Warpcast, Buterin argues that there is an unfair situation where regulators target transparent founders for allegedly issuing unregistered “securities.” He believes that the current incentive structure created by this “anarcho-tyranny” is more damaging to the space than either complete anarchy or strict tyranny. Buterin proposes a shift towards a regulatory environment where issuing a token without a clear long-term value proposition is considered riskier, while following best practices ensures safety. However, achieving this requires constructive engagement between regulators and industry participants.

In a recent show of support for the crypto community, Buterin donated a significant sum of money to assist the legal battle of Tornado Cash developers, Alexey Pertsev and Roman Storm. Buterin transferred 30 ETH, valued at $113,678 at the time, to the “Free Alexey & Roman” legal fund on May 30th. Tornado Cash is an Ethereum-based coin mixing service that enables anonymous crypto transactions. The platform faced sanctions from the US in 2022, with authorities claiming that it facilitated money laundering and posed a threat to national security.

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