Ethereum Co-founder Lubin Criticizes SEC's Actions, Alleges Lack of Transparency
- Ethereum co-founder Joseph Lubin criticized the SEC for reclassifying Ether as a security without transparency.
- He notes that the upcoming decision on Ether spot ETFs influences the SEC's actions.
Unlike Bitcoin, Ethereum seems to have a little trouble, marking its place in the broader financial landscape in the United States.
In January, the U.S. Securities and Exchange Commission (SEC) approved multiple spot Bitcoin exchange-traded funds (ETFs). However, the same agency is now constantly delaying decision for spot Ethereum ETF proposals.
In the midst of these events, Ethereum co-founder Joseph Lubin has shared his perspective. According to a media report, Lubin discussed ConsenSys's choice to sue the SEC following receipt of a Wells notice from the U.S. securities regulator at FT Live’s Crypto and Digital Asset summit in London.
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“The SEC appears to have reclassified Ether as a security without telling anybody that that’s the case. They are going about a strategic series of enforcement actions rather than open discourse and clear rulemaking,” Lubin said.
Lubin, who is also the CEO of Consensys, pointed out that the SEC's renewed enforcement action against Ethereum is partly driven by the upcoming deadline for the regulator to decide on approving Ether spot ETFs.
In April 2024, Consensys filed a lawsuit against the U.S. SEC and its five commissioners, alleging that the SEC had conducted a campaign "to seize control over the future of cryptocurrency" by targeting Ether for regulation as a security.
Edited by Harshajit Sarmah
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