Ethereum founder Vitalik Buterin doesn’t take criticisms lightly.
Michael Saylor, the chief executive officer of MicroStrategy – and one of the most notable personalities in the cryptocurrency industry, has apparently incensed Buterin with his assertion that Ethereum is “inherently unethical” because its creation violates biblically-based securities laws.
Buterin referred to Saylor as a “total clown” in a tweet on Sunday, following the release of a YouTube video in which Saylor characterized all cryptocurrencies other than Bitcoin as missing good ethical foundations and a “biblical” basis.
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Why do maximalists keep picking heroes that turn out to be total clowns? https://t.co/lVhEVbfBbD
— vitalik.eth (@VitalikButerin) July 31, 2022
On Clowns And The Bible
Saylor asserts in the video clip that the basis of the securities laws is the Decalogue, a series of ethical and worship-related values founded on the holy scripture.
Saylor said:
“The basis of securities laws is thou shall not lie, cheat or steal. That’s the basis of the law.”
Hence, Saylor doesn’t buy the popular argument that the securities laws are outmoded.
This prompted Buterin to ponder aloud on Monday morning why Bitcoin maximalists favor “total clowns” like Saylor as heroes.
Vitalik Buterin and Michael Saylor. Image: Yahoo News.
Is Ethereum A Security?
Saylor categorized Ethereum as a security in the past, noting its history of being released through an initial coin offering (ICO) and being maintained by a set of managers, and more.
Securities are investment contracts that incorporate a profit expectation dependent on another party’s efforts. The law imposes disclosure and registration obligations on such offerings.
MicroStrategy is one of the biggest corporate Bitcoin holders in the world, with almost 130,000 units in total possession. Saylor identifies as a “Bitcoin Maximalist” — an individual who favors Bitcoin above all other cryptocurrencies.
The MicroStrategy top honcho stated in June that the “parade of horribles” was really detrimental to Bitcoin and called on the government to control the entire cryptocurrency sector.
SEC Vague About Ethereum’s Status
The Ethereum community quickly retaliated against Saylor, reminding that the enthusiastic Bitcoin advocate was charged with securities fraud by the US Securities and Exchange Commission in 2000.
The SEC has not yet provided a conclusive statement about the security status of Ethereum. Gary Gensler, SEC chairman, has frequently stated that the bulk of digital assets in circulation might be categorized as unregistered securities.
The last time he remarked on Ethereum was in 2018, when he stated that its ICO matched the requirements for a security offering.
Meanwhile, the SEC is in court, having sued Ripple Labs for offering XRP currency as securities. This lack of clarity has contributed to the sluggish expansion of the sector, and stakeholders would feel more at ease if this aspect of the law is clarified.
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ETH total market cap at $205.5 billion on the daily chart | Source: TradingView.com Featured image from FreeDesignFile, chart from TradingView.com
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