Joseph Lubin, the co-founder of Ethereum and CEO of Consensys, a blockchain technology firm, maintains that Ethereum’s native token, ether (ETH), is a commodity. This assertion comes as the United States Securities and Exchange Commission (SEC) intensifies its scrutiny over cryptocurrencies. During a recent interview with CNBC, Lubin unambiguously stated:
I remain steadfast in my belief that ether is a commodity.
The SEC has been stepping up enforcement actions against cryptocurrency platforms for allegedly listing unregistered securities, including taking action against Coinbase, a crypto exchange listed on Nasdaq. Coinbase has contested the SEC’s claims that it facilitates the trading of unregistered securities. The SEC Chairman, Gary Gensler, has gone on record to declare that, except for bitcoin, all other crypto tokens should be classified as securities.
When Gensler testified before the House Financial Services Committee in April, he was asked to clarify whether he viewed ether as a security. However, he avoided giving a specific response, stating, “I’m answering it in the generic because you would not want me to speak about any one set of facts and circumstance.” Concurrently, the chairman of the Commodity Futures Trading Commission (CFTC) has repeatedly affirmed that ether should be considered a commodity.
Lubin emphasized that for crypto tokens to be classified as securities, “There has to be evidence supporting such a categorization,” effectively challenging Gensler’s blanket statements. Lubin has previously compared the trading of ether to that of oil, stating in March, “People buy barrels of oil in the expectation of profit.”
He further elaborated that he believes the United States will recognize that decentralized technologies like blockchain and cryptocurrency are congruent with American values. “Many other nations often take cues from the U.S. in such matters,” Lubin added. He concluded by stating:
The United States wields considerable global influence through various financial and other intermediaries, and the ethos of decentralized technologies is about streamlining or even eliminating such intermediaries. This aligns closely with American principles of free markets, capitalism, and free speech.
Do you believe the SEC will ultimately designate ether as a security? Your opinions are invited in the comments section below.
Frequently Asked Questions (FAQs) about SEC and Ethereum
What is Joseph Lubin’s stance on ether being considered a security?
Joseph Lubin, co-founder of Ethereum and CEO of Consensys, asserts that ether (ETH) is a commodity, not a security. He made this clear during an interview with CNBC, stating that he remains steadfast in his belief.
What actions has the SEC taken concerning crypto tokens?
The U.S. Securities and Exchange Commission (SEC) has been intensifying its enforcement actions against cryptocurrency platforms that it believes are listing unregistered securities. This includes action against Coinbase, a Nasdaq-listed crypto exchange.
What is SEC Chairman Gary Gensler’s view on cryptocurrencies?
Gary Gensler, the Chairman of the SEC, has stated that all crypto tokens, except for Bitcoin, should be considered securities. However, he has not directly commented on whether he considers ether to be a security.
Has anyone else commented on whether ether is a commodity or a security?
Yes, the Chairman of the Commodity Futures Trading Commission (CFTC) has repeatedly said that ether is a commodity. This stands in contrast to the SEC’s broader stance on crypto tokens.
What are Joseph Lubin’s expectations for the future of crypto regulation?
Lubin anticipates that rational perspectives will ultimately prevail in the regulatory environment, much like they did with earlier technologies such as the internet and cryptography. He believes that decentralized technologies align well with American values of free markets, capitalism, and free speech.
What is the influence of the U.S. on global cryptocurrency regulations according to Joseph Lubin?
Joseph Lubin believes that the United States has a significant influence on global perspectives through its financial intermediaries. He states that many other nations often take cues from the U.S., and he expects decentralized technologies to align closely with American principles.
More about SEC and Ethereum
- Joseph Lubin’s Interview with CNBC
- SEC Enforcement Actions on Crypto Securities
- Gary Gensler’s Testimony before the House Financial Services Committee
- CFTC Chairman’s Statements on Ether
- Coinbase’s Response to SEC Allegations