Feb 10, 2023
Joseph Lubin Confident ETH Not Classified as Security in U.S.
Joseph Lubin, the co-founder of Ethereum and founder of ConsenSys, a blockchain technology firm, is confident that Ether (ETH) will not be classified as a security in the United States. This assurance came during an interview with Cointelegraph at the Web3 event, Building Blocks 23, in Tel Aviv.
The question of whether ETH would be classified as a security or not came up due to the transition to a proof-of-stake (PoS) consensus model. Lubin commented that this would be similar to Uber being made illegal, and that the outcry from the crypto community, as well as from certain regulators and politicians, would be tremendous.
The Securities and Exchange Commission (SEC) Chairman Gary Gensler proposed that the blockchain’s transition to PoS could make ETH a security. He believes that staking coins gives the “investing public” anticipation of “profits based on the efforts of others.”
Lubin has had discussions with the SEC and the Commodity Futures Trading Commission (CFTC) for several years. He stated that five years ago, the regulators were trying to wrap their heads around what tokens were and thought that everything was a security. He believes that he and the crypto community have helped the regulators understand that many tokens are not securities.
Lubin is of the opinion that ETH is sufficiently decentralized and has many use cases that do not make it a security. He believes that there is no centralized set of promoters or builders that is specifically trying to raise the value of Ether and enrich investors. He is hopeful that the court system in the United States of America would be supportive of arguments that ETH is not a security.
At present, the SEC and the CFTC are more focused on stablecoins. Brian Armstrong, the founder and CEO of Coinbase, responded to rumors that the SEC was thinking to ban retail consumers from staking crypto. Armstrong stated that staking is not a security and that it would be a terrible path for the U.S. to take if a staking ban was passed. He is hopeful that the industry can come together to publish clear rules that protect consumers while preserving innovation.
The Ethereum blockchain is a powerful platform for Non-Fungible Tokens (NFTs). NFTs are digital assets that are unique and non-interchangeable, and they are used to represent virtual and physical items such as artwork, music, videos, and collectibles. Ethereum is the most popular blockchain for creating and selling NFTs, and many people are using it to promote and market their NFTs.
NFTs are gaining popularity as a way to monetize digital content and create new revenue streams for creators. Many NFT marketing agencies and web3 agencies specialize in promoting and selling NFTs. They use a variety of strategies, including Twitter NFT marketing, to help creators reach a wide audience and maximize the potential of their NFTs.
Ethereum is an important part of the web3 space, and it is critical that it remains a viable platform for the development and sale of NFTs. Joseph Lubin’s assurance that ETH will not be classified as a security is a positive step forward for the Ethereum blockchain and the entire NFT industry.
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