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Joseph Lubin of Ethereum: for the SEC crypto is a threat to the banking landscape

Joseph Lubin, co-founder of Ethereum and founder of Consensys, has released statements regarding the behavior of the Securities and Exchange Commission (SEC) of the USA against cryptocurrencies. 

According to Lubin, the SEC sees Ethereum as a threat to the banking landscape, and is acting to hinder innovation in the United States. 

Ethereum vs. SEC: according to Lubin, the crypto threatens banks and finance in the USA

At FT Live at the Crypto and Digital Asset summit in London, Joseph Lubin, co-founder of Ethereum and founder of Consensys, spoke about how the SEC is acting against cryptocurrencies.

Specifically, Lubin believes that the Securities and Exchange Commission of the United States is engaging in strategic enforcement actions, rather than having a meaningful dialogue with the cryptocurrency industry.

The lack of regulatory clarity and these actions against crypto, suggest that the SEC is intentionally hindering innovation, which threatens the current banking and financial landscape of the country.

And indeed, according to the co-founder of Ethereum, the actions of the SEC are intended to create fear, uncertainty, and doubt for the cryptocurrency industry “in an attempt to paralyze” and force the company to go offshore.

Regarding this, Lubin said:

“The SEC seems to have reclassified Ether as a security without telling anyone that it is doing so. It is proceeding with a strategic series of executive actions rather than an open discussion and a clear definition of the rules”

Ethereum vs. the SEC: the crypto ETF issue could further scare banks

Lubin then spoke about two other issues concerning the SEC against Ethereum. One is the decision by Consensys to sue the SEC, after receiving a Wells notice from the agency. 

Just with the goal of obtaining greater clarity, the company’s counteraction against the SEC will go to a US court. However, it is worth considering that the Commodity Futures Trading Commission had previously classified Ether ETH as a commodity.

On this subject, here is the tweet from Consensys that explains its position:

“It’s not just about protecting a digital asset, but safeguarding the future of innovation in the United States. It’s about safeguarding the future of innovation in the United States. An overly zealous financial regulator should not hold a revolutionary technology hostage.” – @ethereumjoseph in today’s edition of @FT”

The other issue regarding the SEC vs. Ethereum case, instead, concerns the upcoming deadline for Ethereum spot ETFs, which must be approved or rejected by the end of this month of May 2024. 

Here too, Lubin emphasizes that the SEC’s decision could depend on both the success of capital inflows for the Bitcoin spot ETF and the lack of readiness on the part of banks and the traditional financial system. 

In this sense, Lubin has also hypothesized that the perspective that customers in the banking sector will move assets into digital forms, using decentralized finance constructs, could scare many banks and other financial institutions.

Vitalik Buterin’s new revolutionary proposal: EIP-7702

And while on one hand there is concern about whether government and institutions are ready for the great Ethereum, on the other hand, the other co-founder of Ethereum, Vitalik Buterin, is dealing with his continuous technological progress. 

Recently, Buterin together with Sam Wilson, Ansgar Dietrichs and Matt Garnett, presented a new revolutionary proposal: EIP-7702.

Basically, the proposal aims to refine the concept of “account abstraction” on Ethereum. 

It proposes to introduce a new feature and capability to externally owned accounts (EOA), like normal wallets, allowing them to temporarily assume the functions of a smart contract during a transaction. 

Stefania Stimolo
Stefania Stimolo
Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.