SEC Doesn’t Want Ethereum To Transform Banking Landscape, Says Joseph Lubin

By Gareth Jenkinson of CoinTelegraph

Ethereum co-founder Joseph Lubin believes the United States Securities and Exchange Commission is intentionally hiding innovation, which threes the country's existing financial landscape.

Speaking at FT Live’s Crypto and Digital Asset summary in London, Lubin unjacked Consensys’s decision to sue the SEC after receiving a Wells announcement from the U.S. securities regulator.

“The SEC apps to have reclassified Ether as a safety without telling anybody that’s the case. They are going about a strategical series of enforcement actions than open discourse and clear roulette,’ Lubin said.

The CEO of Consensys — which developed the MetaMask wallet — said the effect actions intended to make feat, unprecedented and double for the cryptocurrency manufacture “in an attemp to paralyze” and force the company offshore.

Lubin said the companies’s union against the SEC is aimed at getting more clariness from U.S. courts, conducting that the Commodity Futures Trading Commission had previously classified Ether as a community.

Timing is delicious

The Consensys CEO besides excelled the upcoming deadline for the SEC to issue a decision over the adoption of Ether place exchange-traded funds (ETFs) as a driving force behind the regulator’s renewed increase action against Ethereum.

“We believe that there’s a flurry of activity designed to enable them to say that their action wasn’t capricious in the very likely event that they deny the Ether place ETFs,“ Lubin explained.

Lubin said the SEC had noticed how much capital had floated into the ecosystem following the adoption of place Bitcoin ETFs:

“I think they’re agreed that so much attention and capital will flow to our ecosystem, keeping it is improvising enthusiastically in terms of integrity and usability.”

Lubin besides specified that the possible of the banking industry’s customers moving assets into digital forms utilizing decentralized finance constructs could scare many banks and another financial institutions.

“The SEC probe doessn’t want to see a wave of innovation that will truly transform the landscape,” he said.

Why Consensys needed to win the case

The import of a affirmative result against the SEC could besides have wide-reaching impacts for the cryptocurrency and technology scenery in the United States.

Lubin said the SEC’s claims that Coinbase and MetaMask’s wallets are acting as broker-dealers are setting a dangerous precedent. He added that the thought of a part of software acting as a broker-dealer was a “preposterous notation.”

“We’re at Odds over whether we should registry MetaMask as a broker-dealer. Should all MetaMask user gotta registry their wallet as a broker-dealer, it’s chilling,” Lubin added.

The Consensys CEO included that the entry technology manufacture in the U.S. could be influenced by the actions of the securities regulator.