Early-stage applications to launch Ether exchange-traded funds (ETFs) in the United States are close to being approved, according to Consensys CEO Joseph Lubin. Lubin stated that several 19b-4 applications, including those from firms like BlackRock, will likely be given the green light by the U.S. Securities and Exchange Commission (SEC). However, the actual launch of these ETFs to the public could take longer. Lubin also revealed that representatives from Donald Trump’s presidential campaign have been engaging with participants in the cryptocurrency ecosystem for over two months. He believes that both presidential campaigns will want to show support for crypto. Lubin argued that the SEC is under pressure to adopt a more neutral stance as the U.S. presidential elections draw closer. He hopes that the potential approval of Ether ETFs would lead to the SEC becoming a more considerate regulator. Consensys announced in April that it was taking legal action against the SEC for its undisclosed internal move to reclassify Ether as a security. Lubin mentioned that the situation changed when Gary Gensler took over as SEC chair, suggesting that high-level banking and government factions had collaborated to co-opt the Ethereum ecosystem. Consensys has complied with SEC requests over the past two years, providing extensive documentation. However, they decided to take legal action due to concerns that the SEC was shifting its focus to various aspects of the Ethereum protocol. Lubin said that the SEC’s lawsuits against Binance and Coinbase, as well as the Wells notice letters issued to players like Uniswap, motivated Consensys to challenge the securities regulator. He emphasized that this decision allows Consensys to seek answers about the SEC’s actions and potentially force Gensler to clarify whether Ether is considered a commodity or a security. Lubin criticized the SEC for its approach to cryptocurrencies, particularly Ethereum, suggesting that the institution is overstepping its mandate by attempting to regulate technology and developers. He argued that the SEC’s stance has created regulatory uncertainty and caused confusion in the sector. Despite this, Consensys is fully committed to fighting the SEC and is prepared to spend millions of dollars on the legal battle.
Joseph Lubin warns that the approval of Ethereum ETFs is evolving into a significant political concern.