Regulation
Ethereum Co-Founder Slams SEC Crypto Enforcement
Joseph Lubin, one of the co-founders of Ethereum and CEO of Consensys, has criticized the United States Securities and Exchange Commission (SEC) for its method of regulating cryptocurrencies. At FT Live’s Crypto and Digital Assets Summit in London, Lubin said the SEC was doing policy enforcement rather than open discourse.
This statement follows Consensys’ decision to sue the SEC after receiving a notice from Wells, signaling possible enforcement action.
SEC Safety Classification of Ether
Lubin noted that the SEC apparently reclassified Ether as a security without informing stakeholders. Lubin says this development feels like an eye-opener because it is designed to create fear, uncertainty and doubt within the cryptocurrency industry.
He pointed out that the Commodity Futures Trading Commission had previously classified Ether as a commodity, highlighting the confusion in regulatory positions.
Lubin also hinted that the timing of the SEC’s actions could be associated with the upcoming decision on the approval of Ether spot exchange-traded funds (ETFs). He suggested that the SEC’s recent enforcement actions could be a way to legitimize a possible rejection of these ETFs.
Additionally, Lubin speculated that the SEC may be concerned about excess capital in the cryptocurrency environment, which could pose a threat to traditional financial institutions.
Lubin highlighted the importance of the suit with the SEC, saying the appeal of wallets such as MetaMask brokers could have broad implications for the technology industry in the United States.
Read also: Ripple vs. SEC: Judge may reject $2 billion fine imposed on SEC