- Ethereum’s co-founder, Joe Lubin, asserts that it’s already been decided that Ethereum (ETH) is a commodity, despite regulatory uncertainties.
- Disagreement persists among regulatory bodies, with SEC Chairman Gary Gensler remaining silent on Ethereum’s status, while the CFTC classifies it as a commodity.
Joseph Lubin, Ethereum’s co-founder, is steadfast amid the escalating legal battleground surrounding cryptocurrency. Lubin, who also serves as CEO of ConsenSys, stands resolute in the belief that Ethereum (ETH) is a commodity, not a security. This assertion came during a recent interview with CNBC, as he discussed the potential implications of regulators treating Ethereum as a security.
To add context, a security is often associated with an investment contract and is a financial instrument, while a commodity is a primary or natural asset such as gold or wheat. Lubin’s statement rests on the foundation of previous comments made by Bill Hinman, the former SEC commissioner, who, during a 2018 speech, touched on cryptocurrency securities and Ethereum. However, it was suggested that Hinman’s speech might have created a misinterpretation that the SEC had already classified Ethereum as a non-security.
Lubin underscores that the Commodity and Futures Trading Commission (CFTC) has several times expressed their view of Ethereum as a commodity. CFTC Chairman Rostin Benham concurs that numerous cryptocurrencies are securities, but he firmly believes that the top three assets – Bitcoin (BTC), Ethereum, and Tether (USDT) – fall under his agency’s purview as commodities.
SEC Chairman Gary Gensler, however, has only publicly acknowledged Bitcoin as a commodity, remaining silent on Ethereum. A review of his past commentary as an MIT professor suggests ambiguity, with some instances indicating he viewed Ethereum as a security, while others suggest a belief that Ethereum transitioned from a security into a commodity by 2018.
This regulatory ambiguity is prompting action from members of Congress, including Cynthia Lummis and Kirsten Gillibrand, who are drafting legislation to provide clarity. These legislators align with the CFTC’s viewpoint, identifying Ethereum as a commodity alongside Bitcoin.
Lubin maintains that the commodity status of Ethereum is a “forgone conclusion”. He acknowledges that there might be some US regulators who hesitate to affirm that Ethereum is not a security, but he fails to understand their reluctance.
In related news, the SEC recently filed a lawsuit against Binance and Coinbase, alleging that several assets listed on their platforms, including the Paxos-issued stablecoin BUSD, are securities. Despite these allegations, Lubin’s belief in Ethereum’s commodity status remains unwavering.
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