In a recent interview with CNBC’s “Capital Connection,” Joseph Lubin, co-founder of Ethereum (ETH) and CEO of ConsenSys, expressed his confidence that US regulators will recognize the alignment between decentralized protocols, blockchain technology, and the underlying philosophies that founded the United States.
As the US Securities and Exchange Commission (SEC) engages in legal battles with various crypto firms, Lubin remains optimistic that “clear heads will prevail.”
Ethereum Co-Founder Calls For A Nuanced Regulatory Approach
Lubin drew parallels to past technological advancements, such as the internet, the web, and crypto, emphasizing the eventual acceptance and integration of these innovations into society.
Lubin anticipates a similar trajectory for decentralized protocols and cryptocurrencies, stating:
America will see that decentralized protocols, blockchain, cryptocurrency are aligned with the philosophies of the US And I think much of the rest of the world will follow suit.
The ongoing legal disputes between the SEC and prominent crypto firms, including Binance, Coinbase, and Ripple, have brought the classification of crypto tokens as securities to the forefront.
The SEC has accused these companies of violating securities laws and operating “without proper registration.” Ripple, in particular, faced a lawsuit for allegedly selling cryptocurrency XRP without prior SEC registration.
Meanwhile, Coinbase and Binance have faced allegations of operating unregistered exchanges and violating securities laws. On this matter, Lubin acknowledged the SEC’s stance on tokens potentially being classified as securities but emphasized the need for a comprehensive examination of specific tokens to determine their nature.
Lubin highlighted that SEC Chair Gary Gensler’s pronouncements should be supported by evidence, rather than being solely declarative.
Ethereum Regarded As A Commodity?
Regarding Ethereum’s native cryptocurrency, ETH, Lubin reiterated his belief that it should be considered a commodity rather than a security. Drawing an analogy to oil, he explained that people purchase barrels of oil with the expectation of profit.
Lubin stood by his conviction that Ethereum shares similar characteristics, reinforcing his perspective that it should be viewed as a commodity.
Lubin also addressed concerns within the crypto community regarding regulatory clarity in the United States. Many industry leaders have expressed frustration over the lack of definitive guidelines, with some even contemplating moving their operations overseas in response to the SEC’s regulatory actions.
Lubin noted that several countries consider the US a regulatory benchmark and emphasized that decentralized protocol technology aligns with the principles of right-sizing and eliminating intermediaries. He further highlighted that the U.S. embodies values such as free markets, capitalism, and free speech, which are compatible with the decentralized nature of cryptocurrencies.
As the regulatory landscape continues to evolve, Ethereum co-founder’s optimistic outlook suggests that US regulators will ultimately recognize the potential of decentralized protocols and cryptocurrencies, aligning them with the country’s core principles.
The industry eagerly awaits further developments as stakeholders seek greater clarity and regulatory frameworks that foster innovation while maintaining investor protection.
At the time of writing, ETH has mirrored Bitcoin’s (BTC) performance, recording a 1.1% gain in the last 24 hours. Currently, it has reclaimed its position above the $1,630 level.
Featured image from iStock, chart from TradingView.com