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Cryptocurrencies are a key issue for the US, says Consensys’ Joe Lubin
AUSTIN, TEXAS – Ethereum co-founder Joseph Lubin is taking the fight to the U.S. Securities and Exchange Commission. At the end of April, his company, Consensys, decided to pre-emptively sue the US securities regulator after receiving what is known as a Wells notice – or an indication that the agency is bringing a case against a company.
On the main stage at Consensus 2024 on Wednesday, the longtime cryptocurrency advocate gave a glimpse into what Consensys is trying to gain from its lawsuit filed “in the great state of Texas.” Namely: regulatory clarity, preservation of the free cryptocurrency market, and a decision that open source developers will not be targeted.
“What we’re trying to achieve is the freedom to innovate,” Lubin said on stage. “We have done our best to distinguish between offering access to applications and the need to be a regulated financial institution. We’re pretty sure we’ve got this right and will continue to do so,” which is why the SEC’s recent interest in Ethereum is so concerning.
Lubin suggested that the SEC has begun targeting Ethereum’s largest players such as decentralized exchange Uniswap, the nonprofit Ethereum Foundation, and major development studio Consensys precisely because their efforts challenge potential authority and “vested interests” of regulators and legislators.
“Ethereum poses an existential threat to the burden of the lives of those who would rather perpetuate the system and be top-down control,” Lubin said, later adding that cryptocurrencies are already changing “the structure of society.”
“We need some kind of liberation from top-down command and control because it doesn’t work as it should,” he added.
At the same time, however, Lubin said that cryptocurrencies do has crossed “the abyss” in American politics, which has become an increasingly popular topic of discussion among speakers. For example, CEO Tom Farley of Bullish (which owns CoinDesk) and New York Stock Exchange President Lynn Martin agreed on stage that in 10 years, cryptocurrencies are unlikely to remain a partisan issue.
Likewise, Lubin noted that former President Trump’s embrace of cryptocurrencies and recent court victories have led to a sea change in how they are valued politically. But he stressed the importance of talking to “all parties that currently hold power,” even though many in the cryptocurrency world are “more interested in moving beyond current political constructs” through decentralized technology.
“Most people who benefit from technology realize that decentralization is consistent with American principles such as free-market capitalism and democracy,” Lubin said.