Joseph Lubin, co-founder of Ethereum and founder of ConsenSys, expressed confidence that Ether (ETH) will not be classified as a security in the United States. Lubin made these remarks during an interview at the Web3 event, Building Blocks 23, in Tel Aviv. He stated that there would be a significant backlash from the crypto community, politicians, and regulators if ETH were to be classified as a security. In September, Securities and Exchange Commission Chairman Gary Gensler suggested that the transition of Ethereum to a proof-of-stake consensus model might subject ETH to regulation. Lubin mentioned that he has been in discussions with the SEC and the Commodity Futures Trading Commission for several years. He believes that ETH is sufficiently decentralized and has numerous use cases that do not make it a security. Lubin also noted that regulators are currently more focused on stablecoins. In response to rumors that the SEC was considering banning retail consumers from staking crypto, Brian Armstrong, CEO of Coinbase, stated that staking is not a security and called for clear rules that protect consumers while promoting innovation.
ETH Will Not Be Classified as a Security, Asserts Ethereum Co-Founder Joe Lubin