The co-founder of Ethereum, Joseph Lubin, expressed optimism amidst the ongoing disputes between the U.S. Securities and Exchange Commission (SEC) and crypto firms over the classification of crypto tokens as securities. Lubin stated that “clear heads will prevail” in this matter, drawing parallels to previous technologies like the internet, web, and cryptography. He believes that decentralized protocols, blockchain, and cryptocurrency align with the principles upheld by the U.S. and predicts that the rest of the world will follow suit. Lubin serves as the CEO of ConsenSys, a blockchain technology company.
Lawsuits between crypto firms, including Binance, Coinbase, and Ripple, and the SEC have been ongoing. In 2020, the SEC sued Ripple and its co-founders for allegedly violating securities laws by selling XRP without proper registration. In June, the SEC accused Coinbase of operating an unregistered exchange and broker. Likewise, Binance faced charges for securities law violations.
The SEC chair, Gary Gensler, stated in his written testimony to the House Financial Services Committee that the majority of crypto tokens are securities and should be registered with the SEC. Lubin responded by saying that while Gensler believes many tokens are securities, they should be proven as such instead of being declared arbitrarily.
In a previous interview with CNBC, Lubin compared ether to a commodity like oil rather than a security. He emphasized that people buy barrels of oil with profit expectations, and he stands by his view that ether is a commodity.
Crypto leaders have criticized the U.S. for its lack of clarity regarding crypto regulations and have even considered relocating if the SEC continues its crackdown on crypto firms. Lubin noted that many countries look to the U.S. for guidance, given its influence through financial and other intermediaries. He highlighted that decentralized protocol technology aims to eliminate intermediaries, and the U.S. values free markets, capitalism, and free speech.
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