Twitter CEO Makes Controversial Statement: Ethereum Labeled as Security; Urges Exchanges to Focus Solely on Bitcoin

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• • Jack Dorsey, former CEO of Twitter, opines that Ethereum should be classified as a security amidst the SEC’s lawsuit against Coinbase.
  • Dorsey concurs with the suggestion that Coinbase should transition back to focusing on Bitcoin exclusively.

In a climate of increasing scrutiny for cryptocurrencies, Jack Dorsey, Twitter’s founder and former CEO, has publicly opined that Ethereum (ETH), a leading cryptocurrency, should be designated as a security. His comments are situated against the backdrop of an unfolding lawsuit against Coinbase by the US Securities and Exchange Commission (SEC), alleging that the exchange is involved in unregistered operations.

Dorsey, a well-known Bitcoin (BTC) advocate, expressed agreement with a statement suggesting that Coinbase should revert to a Bitcoin-centric business model, amidst its ongoing legal challenge with the SEC. Pierre Rochard, VP of Research at prominent Bitcoin mining firm Riot Platforms, reiterated a 2015 sentiment expressed by Coinbase’s CEO, stating that

“Ripple, Stellar, and Altcoins are all distractions. Bitcoin is way too far ahead. We should be focused on Bitcoin and sidechains.”

Dorsey publicly concurred with Rochard’s call for Coinbase to refocus its attention solely on Bitcoin.

These discussions about Coinbase’s operational focus are occurring in the wake of the SEC filing a lawsuit against the exchange. The regulatory body accuses Coinbase of functioning as an unregistered national securities exchange, broker, and clearing agency, while also criticizing its failure to register its crypto asset staking-as-a-service program.

The SEC’s recent legal action has sent ripples through the crypto community, particularly as it follows closely on the heels of a similar civil action against Binance, a leading competitor to Coinbase. Industry leaders such as Charles Hoskinson, founder of the Cardano network, perceive the SEC’s escalating interventions as an affront to financial freedom. Hoskinson has expressed the concern that the SEC may be attempting to supplant mainstream cryptocurrencies with a government-controlled Central Bank Digital Currency (CBDC).

Dorsey’s public identification of Ethereum as a security, coupled with his advocacy for a Bitcoin-focused approach for Coinbase, introduces a significant viewpoint into the ongoing discussions surrounding the future of cryptocurrencies and their regulatory status. The outcome of these debates and legal proceedings could shape the trajectory of the crypto market for years to come.

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