Feb 11, 2023

Lubin Confident ETH Won’t Be Classed as Security in US

Joseph Lubin, co-founder of Ethereum and founder of blockchain tech firm ConsenSys, expressed his confidence that Ether (ETH) will not be classified as a security in the United States. Cointelegraph spoke with Lubin at the Web3 event, Building Blocks 23, in Tel Aviv recently.

The Ethereum blockchain is transitioning to a proof-of-stake (PoS) consensus model, which has raised the question of whether ETH could be classified as a security. In response, Lubin compared the situation to Uber being made illegal, saying there would be a “tremendous outcry” from the crypto community and various politicians and regulators.

In September, Securities and Exchange Commission (SEC) Chairman Gary Gensler suggested that the blockchain’s transition to PoS could bring 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 has been involved in discussions with the SEC and the Commodity Futures Trading Commission (CFTC) for many years. He noted that five years ago, regulators were still trying to understand what tokens were, and believed everything was a security. He believes that ETH is still “sufficiently decentralized” and pointed to its “many use cases that don’t implicate it as a security.”

At the moment, Lubin said that regulators appear to be more focused on another aspect of Ethereum—stablecoins. Coinbase founder and CEO Brian Armstrong responded to “rumors” that the SEC was thinking to ban retail consumers from staking crypto, saying that staking is not a security and it would be a “terrible path for the U.S.” to take. Armstrong suggested that clear rules for the industry should be published, and solutions should be found that protect consumers while preserving innovation.

In the meantime, the crypto community is looking to the potential of NFTs to provide innovative opportunities for the web3 space. NFTs are digital assets that are stored on the blockchain, and they are becoming increasingly popular for digital promotion and marketing. NFTs are also being used to sell digital art, music, and other digital products.

NFTs are a great way to promote and market web3 products and services, and many businesses are turning to NFT marketing agencies to help them create and promote their NFTs. These agencies can help businesses create NFTs, market them on social media platforms such as Twitter, and find the best ways to monetize their NFTs.

NFTs are a great way to promote web3 products and services, and with the help of a good NFT marketing agency, businesses can take advantage of the potential of NFTs to reach new audiences and generate revenue. The crypto community is looking forward to seeing how NFTs will continue to shape the web3 space.

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