The ConsenSys founder noted that there are very less chances that the US Securities body may consider Ethereum as a security but still he believes that the US court system will be supportive against all arguments of the SEC agency.
The United States Securities and Exchange Commission (SEC) is a dominant regulatory body against the Crypto sector. According to the SEC agency, the majority of the crypto assets fall under the category of securities asset class and also all such types of crypto asset issuers & service providers should register with the SEC body. Recently SEC fined Kraken exchange $30 Million over crypto staking services, where SEC claimed that Kraken’s staking service was unregistered securities offerings.
Recently Joseph Lubin, the founder of ConsenSys & co-founder of the Ethereum blockchain, appeared in an interview with the popular crypto news media Cointelegraph. In the interview, Lubin said that there are very few chances that the SEC may consider ETH as a security asset.
“I think it’s as likely, and would have the same impact, as if Uber was made illegal,” Lubin said.
According to Lubin, if SEC will consider ETH as a security then it will bring a very big controversy in the crypto sector where SEC will face opposition from the crypto sector and also from the “different politicians and certain regulators.”
Lubin also noted that he had several meetings with the SEC and U.S. Commodity Futures Trading Commission (CFTC) to talk & explain the nature of crypto assets. Where discussions managed to explain to these regulatory bodies that all the crypto assets are not security.
According to Lubin, SEC & CFTC agreed with our explanation of the nature of Crypto assets but now SEC & its chairman Gary Gensler thinks that all crypto assets are security.
“They thought back then that ever was security I think — helped them significantly understand lots of tokens are not securities, and then they went away and Gary and team now think almost everything’s security,_ Lubin stated.
In the last Lubin said that in the worst situation, there is an American court system that will help to fight against such arguments.
It is worth noting that in September 2022, during the transition of the Ethereum blockchain from Proof-of-work (PoW) to Proof-of-stake (PoS) consensus, SEC chairman Gensler said that Ethereum will face regulatory pressure when it will run on PoS consensus.