Ethereum co-founder Vitalik Buterin has issued an article warning about TRUMP, Political Coin Coin Memes, and the current state of the cryptocurrency industry.
Buterin emphasized that Gensler left a regulatory loophole in distinguishing governance tokens from securities, which has allowed many bad actors to operate.
Buterin vs TRUMP: Fighting for the Future of Cryptocurrencies
Vitalik Buterin, co-founder of Ethereum, is increasingly worried about TRUMP and other political coin memes. In one posted In a long post on social media, Buterin clarified his long-term vision for the cryptocurrency industry, asserting that “we have entered a new order” over the past year.
He noted that the financial industry’s acceptance of cryptocurrencies has allowed bad actors to flourish:
“Now is the time to talk about the fact that large-scale political money is beyond the pale: they are not just a source of entertainment, causing harm only to the extent of willing participants, but also a tool for unlimited political bribes, including from foreign countries,” Buterin asserted.
For Buterin, the launch of TRUMP was an important milestone. Nearly 94% of the Tokens were held by 40 wallets, and scammers misappropriated nearly $1 billion, capitalizing on the hype surrounding TRUMP and MELANIA.
Normally, U.S. Presidents cannot conduct private business while in office. As a result, Trump’s Meme Coin has caused great concern, even outside the cryptocurrency industry.
However, Buterin does not blame Trump or any other famous Meme Coin issuer entirely. He noted that former SEC Chairman Gary Gensler created a loophole in securities laws by classifying governance tokens as a separable concept.
In Buterin’s view, Gensler “was never celebrated as a hero, even among crypto skeptics,” due to this flaw.
The former SEC Chairman has been criticized and hated by the crypto industry for his regulatory crackdowns, even after approving a Bitcoin ETF. Gensler has never provided regulatory clarity or closed loopholes in existing regulations.
However, with the benefit of hindsight, Buterin claims that the crypto reaction, “part compliance, part rebellion,” led directly to TRUMP. But he still sees a positive direction.
“There is a bright future of capital allocation mechanisms that can be built upon. We can find ways to ensure alignment with community aspirations and protect important values such as privacy, security, open standards and open source. Acceleration is coming, our task is to choose the most positive direction possible,” he concluded.
Buterin emphasized that the entire DeFi community has a responsibility to educate newcomers about long-term satisfaction and asset building, work towards honest token fundraising, and proactively protect the space from this self-destructive market logic .
He proposed a philosophy of “technological optimism” or “defensive acceleration” to move forward.