Consensys CEO Joseph Lubin Accuses SEC of Stifling Innovation Like Ethereum
Joseph Lubin, the co-founder of Ethereum and CEO of Consensys, has spoken out against the U.S. Securities and Exchange Commission (SEC). He alleged that the regulator is intentionally hindering innovation in the cryptocurrency industry to protect the existing financial landscape.
In a candid discussion at FT Live’s Crypto and Digital Asset Summit in London shared by Cointelegraph, Lubin shed light on Consensys’s decision to sue the SEC after receiving a Wells notice.
Key points:
- Lubin accuses the SEC of reclassifying Ethereum as a security without proper communication or rulemaking.
- Consensys’s counteraction against the SEC aims to obtain clarity from U.S. courts.
- Lubin suggests the SEC’s enforcement actions are timed to justify denying upcoming Ethereum spot ETFs.
- The CEO believes the SEC is concerned about capital flowing 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 industry.
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According to the Consensys CEO, 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 enforcement actions rather than engaging in open discourse and establishing clear rules.
Consensys CEO says SEC intends to create fear
Lubin asserts that the purpose of these actions is to instill fear, uncertainty, and doubt within the cryptocurrency industry.
Lubin also highlighted the suspicious timing of the SEC’s renewed enforcement action against Ethereum. He suggested that it may be linked to the upcoming deadline for the regulator to issue a decision on the approval of 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. In Lubin’s view, 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’s wallets are acting as broker-dealers.
Lubin emphasizes the importance of a positive outcome in Consensys’s legal battle against the SEC, as it could have far-reaching implications for the cryptocurrency and technology landscape in the United States. He cautions that the actions of the securities regulator could impact the entire industry.
