Joseph Lubin claims SEC opposes Ethereum’s potential to revolutionize banking

Joseph Lubin, co-founder of Ethereum, has accused the United States Securities and Exchange Commission (SEC) of deliberately obstructing innovation in the cryptocurrency industry, thereby posing a threat to the country’s financial landscape. Lubin made these remarks during the FT Live’s Crypto and Digital Asset summit in London, where he discussed Consensys’s decision to sue the SEC after receiving a Wells notice from the regulator. According to Lubin, the SEC has reclassified Ether as a security without notifying anyone, and is using a series of enforcement actions instead of engaging in open discourse and clear rulemaking. He further claimed that these actions are aimed at creating fear and uncertainty within the industry to force companies like Consensys to move offshore. Lubin stated that Consensys’s lawsuit against the SEC is intended to seek clarity from US courts, particularly since the Commodity Futures Trading Commission has previously classified Ether as a commodity. Lubin also highlighted the upcoming deadline for the SEC to decide on the approval of Ether spot exchange-traded funds (ETFs) as a factor driving the regulator’s renewed enforcement action against Ethereum. He speculated that the SEC is trying to justify its actions in case it denies the ETF approval. Lubin suggested that the SEC is wary of the potential wave of innovative digital asset adoption and decentralized finance that could transform the financial landscape. Winning the case against the SEC is crucial for Consensys, as it could have far-reaching implications for the cryptocurrency and technology industry in the US. Lubin criticized the SEC’s claim that wallets like Coinbase and MetaMask act as broker-dealers, calling it a dangerous precedent and a “preposterous notion.” He expressed concern that requiring every MetaMask user to register their wallet as a broker-dealer would have a chilling effect on the industry. Lubin concluded by stating that the actions of the SEC could impact the entire technology sector in the US.