ETH co-founder says SEC planning strategic enforcement action against crypto, instead meaningful discourse 

Joseph Lubin said that the American securities regulatory body is planning to intentionally hinder crypto innovation. 

The United States Securities and Exchange Commission (SEC) is the top financial regulatory body in the US and sadly this financial regulatory body is not in favour of crypto adoption in the US jurisdiction. Since 2021, the SEC body has taken several regulatory actions against bad & good crypto companies blindly under the leadership of its chairman Gary Gensler. 

On 9 May 2024, Speaking at FT Live’s Crypto and Digital Asset Summit in London, ConsenSys firm founder & Ethereum co-founder Joseph Lubin disclosed that the ConsenSys firm planned to sue the SEC body.

Lubin said that the SEC body has quietly planned to reclassify the Ethereum coin as a security without making an official announcement. Instead of transparent rulemaking, they are pursuing a strategic approach through enforcement actions.

According to Lubin, Ethereum was already a well-classified Commodity asset class Cryptocurrency, as the commodity regulatory body CFTC defined in the past. 

Furthermore, Lubin said that the SEC body intends to prove that Coinbase crypto exchange & non-custodial decentralised crypto wallet MetaMask are playing the role of a crypto broker.

With the help of lawsuit action, the ConsenSys firm aimed to fight against the hostile regulatory environment and will further pressure the SEC body to provide guidance for the crypto rules. 

ConsenSys founder also speculated that the SEC body is ready with its pre-planned rejection decision against Ethereum spot ETF applications, to stop the inflow of capital in this market.

Lubin thinks that the surging popularity & adoption of digital assets under the decentralised environment is causing huge tension among traditional financial stakeholders & government agencies.

Read also: Cardano founder introduces CIP-69 into the upcoming “Chang hard fork”