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Ethereum (ETH) Founder Makes Surprising Prediction on SEC Crypto Regulation

Thu, 09/14/2023 - 14:15
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Tomiwabold Olajide
Cofounder of Ethereum speaks out on SEC lawsuits against crypto firms
Ethereum (ETH) Founder Makes Surprising Prediction on SEC Crypto Regulation
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Ethereum cofounder and ConsenSys CEO Joseph Lubin comments on the SEC's ongoing legal battles with crypto businesses.

The U.S. Securities and Exchange Commission (SEC) has filed lawsuits against crypto firms, alleging that most crypto tokens are securities and that crypto firms must first register them with the regulatory agency before selling them.

As reported, in a written testimony presented at the House hearing on Tuesday, SEC chair Gary Gensler cited noncompliance with the securities law in the crypto industry as the reason for the filing of several enforcement actions.

As the SEC seeks to perpetuate its regulation-by-enforcement agenda, the cofounder of Ethereum, Joseph Lubin, predicts that "clear heads will prevail."

"I anticipate that, with previous technologies like the internet, the web, and cryptography, clear heads will prevail," Lubin told CNBC.

Lubin also sees the U.S. setting the pace in regulation, while the rest of the world will follow suit: "America will see that decentralized protocols, blockchain, and cryptocurrency are aligned with the philosophies of the U.S. And I think much of the rest of the world will follow suit."

The CEO of ConsenSys also commented on SEC Chair Gary Gensler's belief that most cryptocurrencies will pass the investment contract test. He argues that such a claim cannot be made without evidence.

"Gensler indicated that he feels that many tokens are securities, although they really need to be demonstrated to be that. He can’t just make that pronouncement, " the ETH cofounder stated.

Lubin maintains his stance that Ethereum is a commodity.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.