Solana, others caught in SEC crackdown ‘don’t deserve it,’ Buterin says

A little less a month after Binance and Coinbase were sued, Ethereum founder Vitalik Buterin defends rival chains that have been targeted

article-image

Ethereum co-founder Vitalik Buterin | Alexey Smyshlyaev/Shutterstock modified by Blockworks

share

Ethereum creator Vitalik Buterin has finally weighed in on the US approach to crypto regulation.

Buterin shared his thoughts on the matter early Friday morning through a Twitter ask me anything (AMA). Paradigm co-founder Matt Huang asked him, “How are you feeling about the US policy approach to crypto?”

Buterin responded with sympathy for his blockchain counterparts that are in US regulators’ crosshairs, naming Solana in particular. He seemingly also acknowledged Ethereum’s somewhat privileged position.

“The one comment I’ll make is that I feel bad that @solana and other projects are getting hit in this way. They don’t deserve it, and if ethereum ends up ‘winning’ through all other blockchains getting kicked off exchanges, that’s not an honorable way to win, and in the long term probably isn’t even a victory,” Buterin tweeted.

He said he doesn’t consider other chains, such as Solana, to be the real competition. The true threat, he said, is “the rapidly expanding centralized world that is imposing itself on us.”

Loading Tweet..

Solana (SOL) was deemed a security in the SEC suits against both Binance and Coinbase. And so were cardano (ADA), Polygon’s token MATIC, filecoin (FIL), the Sandbox’s SAND, and Axie Infinity (AXS).

Ether went untouched in the SEC’s crackdown, and even for casual observers, this wasn’t surprising.

When SEC Chair Gary Gensler testified before the House Financial Services Committee in April, he refused to give a definite answer on whether ether was a security or a commodity.

And a little over a month before Gensler’s congressional appearance, CFTC Chair Rostin Behnam was a bit clearer on where ether stood, since his agency has already allowed the trading of ether futures products.

“I’ve made the argument that ether is a commodity,” Behnam told senators in March. “It’s been listed on CFTC exchanges for quite some time.”

He continued, “We would not have allowed the product – in this case the ether futures product – to be listed on a CFTC exchange if we did not feel strongly that it was a commodity asset because we have litigation risk.”

The first regulator to claim ether is a security was New York Attorney General Letitia James, though her view hasn’t gained much traction.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member