Ethereum co-founder Vitalik Buterin has voiced strong criticism of the current US crypto regulation framework, arguing that it unfairly targets cryptocurrencies as securities while allowing "useless things" with "vague potentials" to operate unchecked.

According to Buterin, the primary issue with crypto regulation in the United States is that the system favors assets with unclear promises of potential returns over those with transparent and well-defined financial expectations. He asserts that if a project presents vague potential returns without concrete plans, it often escapes regulatory scrutiny, while projects that offer clear explanations of expected returns and customer rights are more likely to be classified as securities and face stricter regulation.

Buterin described this regulatory inconsistency as "anarcho-tyranny," suggesting that it creates an incentive structure that is unfavorable to the crypto space, preventing innovation and transparency within the industry. He expressed his desire for a shift in regulatory approach that would encourage transparency and long-term value in issuing tokens, where issuing tokens without a clear, long-term plan for maintaining or increasing their economic value is considered riskier than providing such a plan.

Buterin stated that to effect such a change, it requires genuine cooperation and good-faith engagement between regulators and the crypto industry. He argued that the regulatory authority should do more to encourage innovation and reward transparency in the cryptocurrency ecosystem, citing the approval of the spot Ethereum ETF as a positive step in the right direction.

Analysts in the crypto space agree that Buterin's comments highlight the need for a more balanced regulatory approach, one that recognizes the importance of transparency and long-term planning in the cryptocurrency industry. The Ethereum co-founder's call for a regulatory overhaul underscores the ongoing challenges faced by the crypto community in navigating the evolving regulatory landscape and the need for a more constructive dialogue between policymakers and industry stakeholders.