Prominent critic Nouriel Roubini recently criticized Ethereum (ETH) whales, echoing the ambiguous stance of Securities and Exchange Commission (SEC) Chair Gary Gensler on the possible classification of Ethereum as a security.
In a tweet, Roubini argued that Ethereum is a security despite the self-serving claims made by ETH billionaires, labeling their views as "totally laughable."
As reported by U.Today, Gensler, navigating the uncharted waters of cryptocurrencies, suggested in a recent interview with New York Magazine that Ethereum could be classified as a security.
Gensler explained that cryptocurrencies other than Bitcoin are often created by a group of entrepreneurs who seek to profit based on the efforts of intermediaries.
Classifying a cryptocurrency as a security would tether it to increased regulatory scrutiny and compliance requirements.
In a recent SEC meeting, Gensler implied that proof-of-stake (PoS) tokens like Ethereum should be regulated as securities, sparking a clash with the view of Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam.The CFTC perceives Ethereum as a commodity, as evidenced by its recent legal tussle with Binance.
Roubini's backing of Gensler's stance on Ethereum's classification as a security underscores the ongoing tug-of-war surrounding the cryptocurrency's status. The future of the industry hangs in the balance as the industry continues to grapple with regulatory uncertainty.
Arman Shirinyan
