Vitalik Buterin Defends Base’s Decentralization

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Ethereum co-founder Vitalik Buterin has backed Coinbase’s Base, calling it a true L2 and not a glorified exchange.

“But they cannot steal funds or stop withdrawals. L2s are non-custodial — they’re extensions of Ethereum, not servers submitting hashes,” Buterin said.

The comments follow SEC Commissioner Hester Peirce raising concerns over centralized sequencers and whether they resemble exchanges. Coinbase legal chief Paul Grewal countered, arguing L2s are infrastructure providers — more like AWS than trading platforms.

Industry voices warn that misclassifying sequencers as exchanges could stifle innovation and force unnecessary regulation.