Ethereum co-founder Joe Lubin shared his take on the SEC’s abrupt rush regarding spot Ethereum ETFs. As per him, the approval of these products would spark a “floodgate” of demand for the altcoin, likely leading to a supply crunch. He also thought there would be significant natural, pent-up buying pressure for Ether. This could be a watershed moment for Ethereum and the crypto industry.
There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether…Much of the Ether is put to work in the core protocol, DeFi systems, or in DAOs…This could be a pretty profound watershed moment” for Ethereum and the crypto industry as a whole.
Earlier, the blockchain software firm filed a lawsuit directly against the U.S. Securities and Exchange Commission and its five commissioners. The legal action aims to prevent the SEC from classifying Ethereum’s native cryptocurrency, Ether, as a security subject to regulatory oversight.
The Fight Over Ethereum’s Classification Heats Up
After receiving a Wells notice from the SEC on April 10th, the company’s MetaMask cryptocurrency wallet was accused by the regulator of acting as an unregistered broker. This suggests that the SEC considers Ether transactions as securities transactions that need supervision. In response, ConsenSys is seeking a declaratory judgment stating that Ether is not a security to protect itself from any SEC investigation premised on that characterization.
The SEC’s approach prompted Lubin to claim that Wall Street and the SEC are conspiring to stifle the crypto industry with their enforcement-before-regulation strategy. The Consensys lawsuit has already garnered strong advocacy. Coinbase’s top legal officer publicly endorsed Ether as a commodity rather than a security, appreciating ConsenSys for challenging what he saw as the SEC’s illegal expansion of power into the blockchain industry.
