Ethereum co-founder Vitalik Buterin recently shared his thoughts regarding ongoing regulatory struggles facing other blockchain projects, notably including Solana. In an ask-me-anything (AMA) session on Twitter, Vitalik revealed that “he feels bad Solana and other projects are getting hit in this way [US policy approach to crypto].”
The Ethereum co-founder welcomed competition in the blockchain ecosystem and despised the idea of Ethereum winning because of other projects “getting kicked off exchanges.”
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…
— vitalik.eth (@VitalikButerin) June 30, 2023
US Crypto Regulatory Approach Hits Ethereum Competitors
Recall that in recent lawsuits filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase, the regulator shortlisted several cryptocurrencies as “securities.” The controversial label comes with regulatory obligations that are reasonably unattainable for cryptocurrency exchanges that list assets for US customers.
Following the lawsuit, popular trading platform Robinhood delisted Solana (SOL), Cardano (ADA), and Polygon (MATIC). The regulatory uncertainty might also lure other exchanges to delist the assets, even though independent entities for the respective blockchains publicly denounced the securities label.
It is notable that the US securities regulator did not directly file lawsuits against the projects mentioned above. However, the agency also did not name Ether (ETH) as security in any of its cases, putting the widely used Ethereum blockchain in fine stead with crypto exchanges.
However, Ethereum’s co-founder insists that the advantage is “not an honorable way to win, and in the long term probably isn’t even a victory.” Vitalik Buterin added that the “real competition is not in other chains, [but] the rapidly expanding centralized world that is imposing itself on us.”
