In a recent interview with the Bankless Podcast, Ethereum founder Vitalik Buterin revealed his hesitancy to stake a significant portion of his Ethereum (ETH) holdings.
He cited concerns about the current infrastructure surrounding staking services and emphasized the importance of security in making such decisions.
His comments have sparked discussions within the crypto community, with Cardano creator Charles Hoskinson expressing surprise at Buterin’s stance.
Additionally, Buterin shared his thoughts on the US regulatory approach to cryptocurrencies and expressed empathy for projects facing regulatory challenges.
Buterin explained that he prefers to stake only a small portion of his ETH holdings due to security considerations.
Staking requires making the keys that access the staked ETH public on an online system, and for safety reasons, it requires a multi-signature (multi-sig) setup.
However, setting up multi-sigs for staking can still be complex and challenging. These concerns have led Buterin to exercise caution in staking a large amount of his ETH.
Charles Hoskinson, who collaborated with Buterin in the early stages of Ethereum, expressed his astonishment at Buterin’s comments regarding staking.
Hoskinson highlighted that all of their ADA (Cardano) holdings are staked, emphasizing the importance of properly designed proof-of-stake protocols. This response highlights the differing perspectives among crypto founders regarding staking strategies.
Buterin also commented on the US regulatory approach to cryptocurrencies, particularly in relation to recent lawsuits involving exchanges such as Binance and Coinbase.
The US Securities and Exchange Commission (SEC) listed various tokens as “crypto asset securities,” including Cardano, Solana, and Polygon, while Ethereum was not classified as a security.
Buterin expressed sympathy for projects facing regulatory challenges, stating that he feels bad for Solana and others affected. He stressed the importance of fair outcomes for all honorable projects involved.
