- Ethereum co-founder Joe Lubin argued that the SEC’s recent enforcement actions against crypto firms are intended to create fear, uncertainty, and doubt (FUD) in the industry and push crypto offshore.
- Lubin claimed the SEC has reclassified Ethereum as a security without properly informing anyone and alleged that the regulator is overreaching in its attempts to regulate Ethereum and crypto wallets like MetaMask.
- Lubin suggested the timing of the SEC’s actions ahead of the deadline for approving a spot Ethereum ETF is intended to enable the regulator to justify denying the approval, as it likely doesn’t want to see innovation from Ethereum ETFs and decentralized finance applications.
Ethereum co-founder Joe Lubin recently spoke at the Financial Times Crypto and Digital Assets Summit, where he characterized the SEC’s enforcement actions against crypto firms as an attempt to “paralyze us” and push crypto offshore. This comes after the regulator sent a Wells Notice to Lubin’s firm Consensys.
Lubin Says SEC is Trying to Create Uncertainty in Crypto
Lubin stated that the SEC has been classifying Ethereum as a security without informing anyone, prompting Consensys to file a lawsuit seeking clarity that Ethereum is a commodity.
He accused the SEC of trying to create fear, uncertainty and doubt (FUD) in the crypto industry through its recent enforcement actions against companies like Coinbase and Binance. Lubin called the SEC’s notion that crypto wallets like MetaMask should register as broker-dealers “preposterous.”
Concerns Over Ethereum ETF Approval
The Consensys founder also pointed to the suspicious timing of the SEC crackdown ahead of its deadline to approve a spot Ethereum ETF. He believes the regulator wants to avoid approving ETFs to prevent innovation and customers moving assets into DeFi.
Nevertheless, Lubin remains optimistic that court rulings will eventually force the SEC to approve Ethereum ETFs within the next couple years.
Conclusion
In summary, Joe Lubin criticized the SEC’s recent enforcement actions against crypto firms, which he characterized as an attempt to create uncertainty and hinder innovation in the space. This comes as the regulator is facing a deadline to approve or deny a spot Ethereum ETF. Despite the regulatory pressure, Lubin maintains a positive long-term outlook on the approval of Ethereum investment vehicles.
