ETH co-founder Joe Lubin says no chance Ethereum is classed as a security

ETH co-founder and crypto entrepreneur Joseph Lubin is confident that Ether will not be classified as a security in the United States. 

Ethereum co-founder and ConsenSys founder, speaking at the Web3 event Building Blocks 23 in Tel Aviv. When asked if ETH could be classified as a security in the United States following Ethereum’s transition to a proof-of-stake consensus model, Lubin responded: 

In September, SEC Chairman Gary Gensler suggested that the blockchain’s transition to PoS may have put Ethereum (ETH) on regulators’ radar. 

Staking coins, according to Gensler, provided “the investing public” with the expectation of “profits based on the efforts of others.” Lubin stated that he had “for many years” been privy to discussions with the SEC and the Commodity Futures Trading Commission.

He stated that regulators were “just trying to wrap their heads around what tokens were” about five years ago. “Back then, they thought everything was secure. Lubin, on the other hand, believes that ETH remains “sufficiently decentralized,” citing its “many use cases that do not implicate it as a security.”

“There is no centralized group of promoters or builders attempting to maximize the value of Ether and enrich investors,” he explained. “There is a court system in the United States of America that I believe would support arguments that it is not.” 

Lubin stated that regulators appear to be more focused on another aspect of Ethereum at the moment, noting that “most of the focus is on stablecoins right now,” according to people he knows in Washington.

“Staking is not a security,” he said, adding that a staking ban would be a “terrible path for the United States,” noting that it was “a really important innovation in crypto.” 

“I hope we can be able to work together to publish clear and sensible industry rules so consumers can be protected while innovation continues,” Armstrong said. 

Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.