Joseph Lubin, one of the co-founders of Ethereum and the CEO of ConsenSys, expressed confidence that the ongoing legal battles between the U.S. Securities and Exchange Commission (SEC) and various crypto firms will eventually find a resolution in favor of the crypto industry. He believes that U.S. regulators will come to recognize the alignment of decentralized protocols, blockchain technology, and cryptocurrencies with the core principles of the United States.
Lubin made these comments during an interview with CNBC’s “Capital Connection,” where he drew parallels between the current situation in the crypto space and past technological advancements, such as the internet, the World Wide Web, and cryptography. According to Lubin, history has shown that “clear heads will prevail” as new technologies emerge and find their place in society.
He emphasized that decentralized protocols, blockchain, and cryptocurrencies are consistent with the fundamental values of the United States, and he anticipates that the rest of the world will follow suit in recognizing their importance.
In recent times, several crypto firms, including Binance, Coinbase, and Ripple, have been entangled in legal disputes with the SEC. The SEC has alleged that many crypto tokens are securities, and as such, these firms must register them with the regulatory authority before offering them to the public.
For example, Ripple and its co-founders were sued by the SEC in 2020 for allegedly violating securities laws by selling their native cryptocurrency, XRP, without prior registration. Similarly, Coinbase faced accusations of operating an unregistered exchange and brokerage services, while Binance was charged with multiple securities law violations.
SEC Chair Gary Gensler has stated that the majority of crypto tokens are, in his opinion, securities and therefore subject to SEC registration. Lubin, however, noted that Gensler’s views would need to be substantiated, and a proper assessment of tokens should be conducted rather than relying solely on pronouncements.
Lubin also reiterated his belief that Ether (ETH), the cryptocurrency associated with the Ethereum network, should be classified as a commodity rather than a security. He likened it to oil, where people buy barrels of oil with the expectation of profit.
In response to the uncertainty surrounding crypto regulations in the U.S., many leaders in the crypto industry have criticized the lack of clarity and have even threatened to relocate their operations if the SEC continues its crackdown on crypto firms.
Lubin highlighted the global influence of the United States, stating that many countries look to the U.S. for guidance in regulatory matters. He emphasized that decentralized protocols aim to eliminate intermediaries and align with principles such as free markets, capitalism, and free speech—values that are central to the United States.
In conclusion, Joseph Lubin remains optimistic that rationality and an understanding of the value of blockchain and cryptocurrencies will ultimately guide regulatory decisions in a positive direction, benefiting both the industry and the broader economy.
