Ethereum co-founder and CEO of ConsenSys, Joseph Lubin, expressed optimism on Thursday about the future of cryptocurrencies in the US, anticipating that the country will adopt crypto regulations similar to how it embraced past technologies like the Internet. His comments come amid ongoing legal battles between several crypto firms, including Binance, Coinbase (NASDAQ:COIN), and Ripple, and the U.S. Securities and Exchange Commission (SEC) over alleged securities law violations.
During an interview on CNBC's 'Capital Connection', Lubin stated that he expects "clear heads will prevail" and that America will recognize that "decentralized protocols, blockchain, cryptocurrency are aligned with the philosophies of the U.S." These statements were made in light of SEC chair Gary Gensler's assertion that most crypto tokens are securities and therefore need to be registered with the SEC.
Lubin further challenged this stance by maintaining his belief that Ethereum should be viewed as a commodity akin to oil. He reaffirmed his conviction during the same interview, saying: "I stand by my conviction that ether is a commodity."
The Ethereum co-founder's optimism comes despite criticism from crypto leaders about the lack of clarity around US crypto regulations. Some have even threatened to leave the country if the SEC continues its crackdown on crypto firms. However, Lubin remains hopeful that the US will lead the world in adopting and regulating cryptocurrencies.
He pointed out that the US has significant influence globally through financial intermediaries and other channels. He also noted that decentralized protocol technology is about eliminating intermediaries in many ways, which aligns with US principles of free markets, capitalism, and free speech.
The SEC has been involved in several legal disputes with crypto firms recently. In 2020, it sued Ripple and its co-founders for allegedly violating securities laws by selling its native cryptocurrency XRP without first registering it with the SEC. Similar allegations were made against Coinbase for operating an unregistered exchange and broker in June 2023. Binance was also charged with several securities law violations in the same month.
Lubin's comments and the ongoing legal battles underscore the current uncertainty surrounding crypto regulations in the US. However, if Lubin's predictions hold true, the country could soon be at the forefront of a new wave of technological innovation, shaping beneficial crypto regulations that could set a precedent for the rest of the world to follow.
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