The strength of the crypto ecosystem has “never been better or stronger,” according to Ethereum co-founder Joseph Lubin. He believes “more clarity” on regulation will help the industry.
Joseph Lubin – Co-Founder of Ethereum
“I think our industry has been affected by the merger of two main factions: cryptocurrency … and the crypto side of technology.
Ethereum Co-Founder Discusses Crypto Ecosystem and Regulation
Ethereum co-founder Joseph Lubin discussed the state of the crypto ecosystem, regulation and whether ETH is a security in an interview with CNBC last Wednesday.
“The power of the ecosystem has never been better or stronger, although there are certainly disadvantages in terms of microeconomics, world finance, and banking issues for some companies in the cryptocurrency space. Conferences in Paris, Denver, and Los Angeles on an unprecedented scale. When builders join the ecosystem to build a vital alternative economy, they don’t leave. Speculators still come and go, but building has never been better.”
Commenting on the reasons for the rise in BTC and ETH prices, he suggested:
“Because they have an efficient foundation. Bitcoin is a currency with limited supply. ETH is a currency with stable value and strong purchasing power… The development, use cases, usability, scalability of the Ethereum ecosystem has never been better. It It’s accelerating.”
Lubin also noted that the possibility of a smaller rate hike by the Federal Reserve in the future could also help boost cryptocurrency prices.
“It’s a hedge against inflation.”
Regarding cryptocurrency regulation and strong enforcement actions by the U.S. Securities and Exchange Commission (SEC), the Ethereum co-founder stated:
“I think more clarity and more transparency will help our industry. The two main factions of the industry have been merged into one: cryptocurrency… and technical encryption, they are just building a decentralized protocol infrastructure .”
While noting that “cryptocurrencies should absolutely be regulated” and that “those issued tokens are considered securities,” he argued:
“The tech crypto guys are just technologists. We’re just building the infrastructure that the traditional economy and our economy can use. But the government doesn’t want to regulate innovation.”
Is ETH a security?
Lubin also commented on regulators accusing ETH of being a security. In response to the New York Attorney General’s claim in the Kucoin exchange lawsuit that ETH is a security, the Ethereum co-founder stated:
“Anyone can say anything, and it’s not always right.”
SEC Chairman Gary Gensler has repeatedly stated that all crypto tokens other than BTC are securities “because there is a pool between the two, and the public is predicting returns based on that pool.” Lubin opined:
“People are buying barrels of oil to make a profit.”
When asked if he believes ETH is not a security, the Ethereum co-founder replied:
“I don’t see any reason to speculate about something that is extremely unlikely.”
U.S. regulators disagree on whether ETH should be classified as a security. SEC Chairman Gensler believes that ETH is a security, while the US Commodity Futures Trading Commission (CFTC) Chairman has repeatedly stated that it is a commodity. However, both regulators agree that Bitcoin is a commodity.
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