Ethereum
Consensys CEO Joseph Lubin Accuses SEC of Stifling Innovation Like Ethereum
Joseph Lubin, co-founder of Ethereum and CEO of Consensys, has spoken out against the United States Securities and Exchange Commission (SEC). He alleged that the regulator is intentionally hindering innovation in the cryptocurrency sector in order to protect the existing financial landscape.
In a candid discussion at the FT Live Crypto and Digital Assets Summit in London, shared by Cointelegraph, Lubin shed light on Consensys’ decision to sue the SEC after receiving notice from Wells.
Key points:
- Lubin accuses the SEC of reclassifying Ethereum as a security without proper disclosure or regulation.
- Consensys’ reaction against the SEC aims to obtain clarification from the American courts.
- Lubin suggests that the SEC’s enforcement actions are timed to justify the denial of upcoming Ethereum spot ETFs.
- The CEO believes that the SEC is concerned about the influx of capital into the rapidly improving Ethereum ecosystem.
- Lubin warns that the SEC’s claims against Coinbase and MetaMask could set a dangerous precedent for the entire tech sector.
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According to the CEO of Consensys, the SEC appears to have reclassified Ethereum as a security without openly communicating this change to the public. He argues that the regulator is pursuing a series of strategic coercive measures rather than engaging in open discourse and establishing clear rules.
Consensys CEO says SEC intends to create fear
Lubin says the aim of these actions is to sow fear, uncertainty and doubt within the cryptocurrency industry.
Lubin also highlighted the suspicious timing of the SEC’s new enforcement action against Ethereum. He suggested that this could be linked to the upcoming deadline for the regulator to make a decision on approving Ethereum spot exchange-traded funds (ETFs).
Lubin speculates that the SEC is concerned about the significant attention and capital that could flow into the Ethereum ecosystem. According to Lubin, the SEC may be reluctant to see a wave of innovation that could transform the financial landscape.
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The Consensys CEO also expressed concern over the SEC’s claims that Coinbase and MetaMask wallets act as brokers.
Lubin highlights the importance of a positive outcome in Consensys’ legal battle against the SEC, as it could have far-reaching implications for the crypto and technology landscape in the United States. He warns that the securities regulator’s actions could impact the entire industry.
Vignesh Karunanidhi
Vignesh Karunanidhi
Writer of the Milk Route
Vignesh is a seasoned professional in the crypto field since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content including news articles, long-form articles, and articles blog, all focused on sharing. the beauty of blockchain and crypto.