Joseph Lubin, co-founder of Ethereum, is sounding the alarm on the U.S. Securities and Exchange Commission (SEC), warning that the regulator’s current stance on cryptocurrencies will have a lasting impact on the industry.
In a recent interview with Wired, Lubin expressed concerns that if the SEC were to classify Ethereum (ETH) as a security, it would effectively prohibit Americans from purchasing ETH and hinder developers from creating new applications on the Ethereum network.
Earlier this year, SEC Chair Gary Gensler declined to confirm whether he considers ETH to be a security. Lubin argues that if the SEC goes ahead with such a classification, it could have a chilling effect on Ethereum users throughout the United States. He also worries that the U.S. government might extend its influence globally, pressuring other countries to limit access to decentralized protocols and financial innovation.
“We don’t want to feel marginalized by an irrational or imprudent regulatory body. We need to stand our ground,” Lubin asserts.
Lubin serves as the CEO of Consensys, the company behind MetaMask, the world’s most widely used cryptocurrency wallet. Consensys recently received a Wells Notice from the SEC, indicating that the regulator is considering taking enforcement action against the company. In response, Consensys filed a lawsuit against the SEC, aiming to prevent the reclassification of ETH as a security.
“Our lawsuit is specifically related to MetaMask, but it also serves as a broader statement. The SEC has been misleading the industry for some time, internally treating ETH as a security without publicly acknowledging it. Unless we take independent action to address this issue head-on, the SEC will likely continue on this path,” Lubin explains.
Lubin acknowledges that introducing a paradigm shift like Ethereum into a society that appears to be functioning well is challenging. However, he remains optimistic that the situation will ultimately be resolved. He compares it to the early days of the internet, which initially caused confusion and necessitated open dialogue. In the U.S., safe harbors were established to foster the growth of web technology, resulting in transformative advancements.
While Lubin acknowledges the current resistance faced by the cryptocurrency industry, he believes that the industry will overcome these challenges in due course.
