Ethereum Co-Founder Expresses Confidence in US Regulators Despite Crypto Crackdown
In a recent interview with CNBC’s “Capital Connection,” Joseph Lubin, co-founder of Ethereum (ETH) and CEO of ConsenSys, shared his belief that US regulators will eventually recognize the alignment between decentralized protocols, blockchain technology, and the principles that founded the United States (source). As the US Securities and Exchange Commission (SEC) battles legal disputes with various crypto firms, Lubin remains optimistic that “clear heads will prevail.”
Ethereum’s Co-Founder Draws Parallels to Technological Advancements
Lubin compares the evolution of decentralized protocols and cryptocurrencies to past technological advancements, such as the internet and the web. He highlights the eventual acceptance and integration of these innovations into society. Lubin anticipates a similar trajectory for decentralized protocols and cryptocurrencies, stating:
“America will see that decentralized protocols, blockchain, cryptocurrency are aligned with the philosophies of the US And I think much of the rest of the world will follow suit.”
The ongoing legal disputes between the SEC and prominent crypto firms, including Binance, Coinbase, and Ripple, have brought the classification of crypto tokens as securities to the forefront. The SEC has accused these companies of violating securities laws and operating “without proper registration.” Ripple, in particular, faced a lawsuit for allegedly selling cryptocurrency XRP without prior SEC registration. Meanwhile, Coinbase and Binance have faced allegations of operating unregistered exchanges and violating securities laws. Lubin acknowledges the SEC’s stance on tokens potentially being classified as securities but emphasizes the need for a comprehensive examination of specific tokens to determine their nature. Lubin highlights that SEC Chair Gary Gensler’s pronouncements should be supported by evidence rather than being solely declarative (source).
Ethereum Co-Founder Advocates Viewing ETH as a Commodity
Regarding Ethereum‘s native cryptocurrency, ETH, Lubin reiterates his belief that it should be considered a commodity rather than a security. He draws an analogy to oil, explaining that people purchase barrels of oil with the expectation of profit. Lubin stands by his conviction that Ethereum shares similar characteristics, reinforcing his perspective that it should be viewed as a commodity.
Lubin also addresses concerns within the crypto community regarding regulatory clarity in the United States. Many industry leaders express frustration over the lack of definitive guidelines, with some contemplating moving their operations overseas in response to the SEC’s regulatory actions. Lubin notes that several countries consider the US a regulatory benchmark and emphasizes that decentralized protocol technology aligns with principles such as right-sizing and eliminating intermediaries. He further highlights that the US embodies values such as free markets, capitalism, and free speech, which are compatible with the decentralized nature of cryptocurrencies (source).
As the regulatory landscape continues to evolve, Ethereum’s co-founder’s optimistic outlook suggests that US regulators will ultimately recognize the potential of decentralized protocols and cryptocurrencies, aligning them with the country’s core principles. The industry eagerly awaits further developments as stakeholders seek greater clarity and regulatory frameworks that foster innovation while maintaining investor protection.
At the time of writing, ETH has mirrored Bitcoin’s (BTC) performance, recording a 1.1% gain in the last 24 hours. Currently, it has reclaimed its position above the $1,630 level.
Featured image from iStock, chart from TradingView.com
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