- Ethereum co-founder Joseph Lubin warns about the potential negative impact of the U.S. Securities and Exchange Commission’s (SEC) current policies on the crypto industry.
- If Ethereum (ETH) is declared a security by the SEC, it could limit access to the protocol for US citizens and developers.
- Lubin, also the CEO of Consensys, creators of MetaMask, has initiated a lawsuit against the SEC to prevent the reclassification of ETH as a security.
Ethereum co-founder Joseph Lubin raises concerns over the SEC’s crypto policies, warning that declaring ETH a security could have far-reaching implications for the industry.
Lubin’s Warning About SEC’s Crypto Policies
Joseph Lubin, co-founder of Ethereum, has voiced his concerns over the SEC’s current stance on cryptocurrencies. In a recent interview with Wired, he warned that if the SEC declares Ethereum a security, it would significantly impact the industry. US citizens would be unable to purchase ETH, and developers would be hindered from further developing Ethereum or creating applications on the protocol.
SEC’s Unclear Position on Ethereum
Earlier this year, SEC Chair Gary Gensler did not confirm whether he views Ethereum as a security. Lubin expressed his concerns over this uncertainty, stating that if the SEC manages to classify Ethereum as a security, it could have a chilling effect on Ethereum users across America. He also warned about the potential international implications, with the US using its legal reach to pressure other countries into reducing access to decentralized protocols and financial disintermediation.
Consensys’ Lawsuit Against the SEC
Consensys, the company behind MetaMask, the world’s most popular crypto wallet, and of which Lubin is the CEO, recently received a Wells Notice from the SEC. This notice is a warning of a potential enforcement action. In response, Consensys has filed a lawsuit against the SEC. Lubin explains that the lawsuit aims to prevent the SEC from reclassifying Ethereum as a security. He accuses the SEC of gaslighting the industry by internally declaring Ethereum a security and enforcing this notion secretly.
Conclusion
Lubin’s warnings and the ensuing lawsuit against the SEC highlight the ongoing tension between the crypto industry and regulatory bodies. The outcome of this lawsuit could have significant implications for Ethereum and the wider crypto industry. As the debate continues, the future of Ethereum’s classification remains uncertain.
