Vitalik Buterin: Cryptocurrency regulation has created "anarchic tyranny"

In response to a user of Warpcast, a social media platform based on the Farcaster protocol, Vitalik Buterin described a situation where current regulations have essentially cornered honest cryptocurrency developers. The main challenge with cryptocurrency regulation (especially in the US) has always been this phenomenon, if you do something useless or you ask people to give you money in exchange for vague mentions of potential returns, then you are free and innocent, but if you try to make it clear to your customers where the returns are coming from and promise them what rights they have, then you are screwed because you are a "security". The layer of incentives created by this "tyranny of anarchy" will end up being worse than pure anarchy or pure tyranny. In terms of anarchy, there seems to be an endless supply of bad actors, scammers, and baseless hype writers on social media and sharing platforms.
Previously, Buterin had made three proposals aimed at addressing the "uselessness" of cryptocurrency products and services.