Consensys CEO Forecasts U.S. Ethereum ETF Approval and Expresses Concern Over Regulatory Uncertainty
Summary:
Joseph Lubin, CEO of Consensys, predicts that the initial applications to launch Ethereum exchange-traded funds (ETFs) in the U.S. are nearly done, awaiting approval from the U.S. Securities and Exchange Commission (SEC). Furthermore, representatives of Donald Trump's presidential campaign have reportedly been engaging with the cryptocurrency ecosystem. Lubin raised concerns over potential reclassification of Ether as a security and implied that SEC's current stance creates a cloud of regulatory uncertainty over cryptocurrencies. Despite the challenges, Consensys remains committed to its legal battle against SEC.
Joseph Lubin, CEO of Consensys, has confirmed that the initial phases of applications for Ethereum exchange-traded funds (ETFs) in America have essentially been completed. In a private interview with Cointelegraph at DappCon in Berlin, he affirmed his expectations of BlackRock's several 19b-4 applications securing approval from the U.S. Securities and Exchange Commission (SEC). However, the actual release to the public could be a lengthier undertaking.
Expressing his take on the situation, Lubin added, “From where I see it, the 19-b4’s are pretty much a sealed deal. The S1’s, essentially the newbie ETFs going to market, that might take a while. Its occurrence is unsure. Currently, it's more of a significant political issue.”
Lubin also shared insights about the representatives of Donald Trump’s presidential campaign who have reportedly been engaging with parties within the cryptocurrency ecosystem for over two months. “Based on what we’ve been told, they're assembling an approach given the presence of very adept backers from the Democratic side. In my opinion, both the presidential campaign team and other individuals would likely want to be seen as encouraging towards crypto,” said Lubin.
The Consensys CEO also mentioned the growing pressure on the SEC to adopt a more balanced position as the U.S. presidential elections edge closer. According to Lubin, the possibility of Ether (ETH) ETFs being sanctioned would ideally bring a significant change in the SEC's role, enabling it to become a “perceptive regulator.”
In his words, “If 40%, 50%, or 60% of the citizens eligible to vote possess digital assets, one would not wish to suppress their portfolios or disturb institutions, pension funds, or any other type of conserved funds.”
In April, Consensys announced its plans to initiate legal proceedings against the SEC based on what Lubin portrays as an undisclosed motion to redefine Ether as a security. He stated that interactions with the past SEC regime, headed by Jay Clayton, were more productive, enabling more discussions regarding the classification of Ether as well as other cryptocurrencies as securities.
Things were different under the leadership of Gary Gensler, the new SEC chairman, according to Lubin. He stated that influential banking and government sides had collaborated to incorporate the Ethereum ecosystem. Lubin added, “In our analysis, by incorporate I mean reshaping it into a U.S. style of decentralization where every entity is required to register. Possibly introducing some secret entries in the cryptography.”
Over two years, Consensys complied with SEC requests, furnishing the regulator with more than 100,000 pages of documents. The decision to avert further legal action against the SEC was influenced by increasing concerns about the regulator targeting MetaMask, staking, developers, and the Ethereum protocol.
According to Lubin, the lawsuits filed by SEC against Binance and Coinbase for allegedly offering unregistered securities alongside Wells notice letters sent to ecosystem players prompted Consensys’ to challenge the securities regulator. “We were informed of an impending Wells notice, and we were positive they would sue us. Therefore, we proceeded to frame a counteraction.”
Lubin elaborated that this decision enabled Consensys to take the initiative to demand critical answers over SEC’s actions. It might even force Gensler to make clear his stand on whether Ether is regarded as a commodity or security. Lubin added, “Everyone keeps announcing it's a commodity. Yet he is unable to admit it's a security. He continues to penalize everyone in our ecosystem as if they have clandestinely, internally decided it is a security.”
Lubin believes that the SEC's stance on cryptocurrencies, especially Ethereum, has led to widespread confusion and makes it seem like the SEC is intent on regulating technology and developers, straying from its intended role of regulating securities. Despite the “perpetuated cloud of regulatory uncertainty,” Lubin remains committed to the fight against the SEC and is prepared to invest millions into the legal battle.
Published At
5/23/2024 12:19:54 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.