Ever since Ethereum’s transition to proof-of-stake, rumors about ETH’s ranking as a financial security have been circulating. However, Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, is firm: Ethereum will never be considered a financial security. This statement sounded like a thunderclap during the Web3 event, Building Blocks 23, where Cointelegraph was present to echo it.
The perfect response to Gary Gensler’s words
As Gary Gensler works to step up the crackdown on cryptos, Lobin sees a bright future for Ethereum.
In interview recent with Cointelegraph, Lubin was asked whether or not Ethereum will be labeled as a security. He has answered :
“I think it’s as likely, and would have the same impact, as if Uber were to become illegal”
For many, bitcoin and Ethereum are not securities. Lubin went on to say that the crypto community would react very negatively to labeling Ethereum as a security.
Lubin’s response follows comments of the Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler. While Ethereum successfully transitioned (The merge) in September, Gensler said further examination will be required. He was quick to liken token staking to a process that would allow the investing public to earn “profits based on the efforts of others.”
Lubin defends Ethereum’s stance to SEC and CFTC on title status
Although Gensler takes a firm line, Lubin said he has been involved in cryptocurrency discussions with the SEC and the U.S. Commodity Futures Trading Commission (CFTC) for many years.
He continued:
“They thought at the time that everything was a title. We have – I think – helped them understand that a lot of tokens aren’t titles, and then they’re gone and Gary and his team now think almost everything is a title”
Lubin concluded by stating that despite the fact that there are differing views on the status of Ethereum as a security, it is certain that the US legal system would ultimately support the arguments for its non-classification as a security. as a title. However, the SEC’s all-out cryptocurrency showdown continues.
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