Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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.
SEC v. Crypto: No backing down
As the legal battle between Ripple and the Securities and Exchange Commission (SEC) nears its conclusion, the company's president, Monica Long, has declared that the firm will not back down from the fight.
Tomiwabold OlajideLast month, Coinbase moved to dismiss the SEC lawsuit, while notable individuals and organizations joined the case as amicus curiae, among which are six securities law scholars from notable universities. LBRY, despite losing its summary judgment against the SEC, recently filed a notice of appeal.
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team