Feb 11, 2023
Lubin Confident ETH Not Classified as Security in US
Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, is confident that Ether (ETH) will not be classified as a security in the United States. Cointelegraph spoke to Lubin at the Web3 event, Building Blocks 23, in Tel Aviv to discuss the topic.
The conversation arose after Ethereum’s transition to a proof-of-stake (PoS) consensus model, which Securities and Exchange Commission Chairman Gary Gensler suggested might have brought ETH under the regulators’ beat. Gensler believed staking coins gave “the investing public” anticipation of “profits based on the efforts of others.”
Lubin said he was privy to discussions with the SEC and the Commodity Futures Trading Commission “for many years.” He explained that five years ago the regulators were “just trying to wrap their heads around what tokens were.”
“They thought back then that everything was a security. We — I think — helped them significantly understand lots of tokens are not securities, and then they went away and Gary and team now think almost everything’s a security.”
Lubin believes that ETH remains “sufficiently decentralized” and pointed to its “many use cases that don’t implicate it as a security.” He said that there is “no centralized set of promoters or builders that is specifically trying to raise the value of Ether and enrich investors.”
He added that he is confident that the court system in the United States of America would be supportive of arguments that it is not a security.
Rather than focusing on Ethereum, Lubin noted that people close to the action in Washington D.C. are more focused on stablecoins. Coinbase founder and CEO Brian Armstrong, who responded to “rumors” that the SEC was thinking to ban retail consumers from staking crypto, said that staking is not a security and it would be a “terrible path for the U.S.” if a staking ban was passed.
In the Web3 space, Non-Fungible Tokens (NFTs) are becoming increasingly popular. Many companies and individuals are looking to use NFTs as a way to promote their services and products. NFTs are also being used to create unique digital collectibles and artwork.
NFT marketing is a growing field and many companies, such as NFT marketing agencies and web3 agencies, are offering services to help companies and individuals to promote their NFTs. These services include Twitter NFT marketing and other strategies to help companies and individuals to sell their NFTs.
Overall, the Web3 space is an exciting and rapidly growing sector and Ethereum co-founder Joseph Lubin is confident that Ether (ETH) won’t be classified as a security in the United States. There are a range of services available to help companies and individuals to promote and sell their NFTs, and the future of the Web3 space looks bright.
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