Joseph Rubin, co-founder of Ethereum and CEO of ConsenSys, has filed a complaint with the U.S. Securities and Exchange Commission (SEC). He claimed that regulators are intentionally hindering innovation in the cryptocurrency industry in order to protect the existing financial environment.
In a candid discussion at FT Live’s Crypto and Digital Assets Summit in London, shared by Cointelegraph, Rubin opened up about ConsenSys’ decision to sue the SEC after receiving the Wells notice.
Key Point:
- Rubin accused the SEC of reclassifying Ethereum as a security without proper communication or rulemaking.
- ConsenSys' counterattack against the SEC is aimed at gaining clarity from U.S. courts.
- Rubin suggests that the SEC’s enforcement action is timely enough to warrant a rejection of future Ethereum spot ETFs.
- The CEO believes the SEC is concerned about capital flowing into the rapidly improving Ethereum ecosystem.
- Rubin warned that the SEC's allegations against Coinbase and MetaMask could set a dangerous precedent for the entire tech industry.
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According to ConsenSys' CEO, the SEC appears to have reclassified Ethereum as a security without publicly communicating this change to the public. He argues that regulators are pursuing a series of strategic enforcement actions rather than holding open discussions and establishing clear rules.
ConsenSys CEO says SEC is trying to stoke fear
Rubin claims that the purpose of these actions is to sow fear, uncertainty, and doubt in the crypto industry.
Rubin also highlighted that the timing of the SEC's new enforcement action against Ethereum is questionable. He suggested that this could be related to the impending deadline for regulators to make a decision on the approval of the Ethereum Spot Exchange Traded Fund (ETF).
Rubin speculates that the SEC is concerned about the potential influx of attention and money into the Ethereum ecosystem. In Rubin's view, the SEC may not want to see a wave of innovation that could upend the financial landscape.
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ConsenSys' CEO also expressed concern about the SEC's claims that Coinbase and MetaMask wallets are acting as broker-dealers.
Rubin emphasizes the importance of a positive outcome in ConsenSys' legal battle with the SEC. That's because it could have far-reaching implications for the U.S. cryptocurrency and technology landscape. He warned that the securities regulator's actions could have an impact on the entire industry.
