Consensys Set to Challenge SEC's Policy, Ethereum Co-Founder Lubin Reveals in Podcast
Summary:
Ethereum co-founder Joe Lubin revealed that Consensys is prepared to spend millions in legal fees to contest the SEC's enforcement campaign against the Ethereum ecosystem in the U.S. He expressed concern over the financial and operational costs the crypto community faces due to the SEC's policies, and criticized the SEC's "blanket enforcement" approach. Lubin also discussed Ethereum's ongoing development plans, the importance of modularity, and the goal of an "intents-based architecture" for the future of the Ethereum network. Other topics covered in the podcast were the Solana ecosystem, Bitcoin, and Vitalik Buterin's continued influence on Ethereum.
Joe Lubin, co-founder of Ethereum, recently acknowledged Consensys’s readiness to invest millions of dollars in a bid to counteract the enforcement campaign launched by the U.S. Securities and Exchange Commission (SEC) against the extensive Ethereum community in America. In a one-on-one conversation on the Decentralize with Cointelegraph podcast, Lubin unveiled the specifics behind Consensys' initiative of anticipatory legal proceedings against the SEC. The whole podcast can be accessed below.
Lubin, also the Ethereum creator, asserts that assessing the financial and operational charges borne by the cryptocurrency fraternity due to the SEC’s “govern through enforcement” strategies is challenging. “We’re totally committed. However, we ought to contemplate the expenditures we’ve had to endure and the ongoing costs for our entire ecosystem,” Lubin voiced his thoughts to Cointelegraph.
The Consensys CEO made mention of the SEC’s “blanket enforcement” actions which compelled firms to source and compile “a gigantic volume” of documentation, satisfying the U.S. securities regulator demands.
Lubin expressed his concerns that fledgling enterprises in the crypto sector threatened with legal suits by SEC find it a struggle to garner capital, stating, “This is an incredibly effective method of stalling or exterminating an ecosystem.”
Lubin let slip that Consensys is set to disburse “scores of millions of dollars” in attorney charges to tackle the SEC on its “confidential, internal” declaration of Ether (ETH) as a security.
“Everyone keeps insisting it’s a physical asset. Arguably, he seems unwilling to designate it as a security. He’s penalizing everyone in our ecosystem as if a secret internal decision has already been made that it is a security,” Lubin added further.
Turning to Ethereum’s ongoing developmental plans, the significance of modularity, and layering tactics for scalability, Lubin explained how the technology’s capacity for scalability has evolved, leading to diverse applications and broader use. He said:
“Mature engineering systems opt for modularity for effectiveness and efficiency. Our ecosystem is modularizing and layering, and that’s excellent. The difficulties some encounter are associated with this divergent phase of achieving scalability.”
Lubin foresees a future where Ethereum’s architecture is based on "intents," where its network seamlessly executes the necessary communications and transactions according to a user's specific desires. This will require the incorporation of AI and solver networks, along with highly scalable and diversified machinery. Lubin took a similar approach to today's internet, powered by various databases serving different purposes.
Besides Ethereum's trajectory, Lubin shared his views on the investment return for validators and the inherent risks in staking, the Solana (SOL) ecosystem, and how Bitcoin (BTC) influenced his foray into cryptocurrencies and blockchain. Additionally, he underscored the ongoing impact of Vitalik Buterin on Ethereum and his broader vision.
Listen to the whole episode for the full discourse and check out Cointelegraph's complete series of podcasts.
Disclaimer: The commentary provided here is for general informational purposes. It should not be used as legal or investment advice. The views expressed here are solely those of the author and do not reflect or represent the views of Cointelegraph.
Published At
5/30/2024 5:30:00 PM
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.