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Ethereum’s commodity status: insights from Consensys creator Joseph Lubin

Ethereum developers address finality issues in Beacon Chain

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TL;DR

  • Joseph Lubin argues for Ethereum’s classification as a commodity, citing previous SEC and CFTC statements.
  • SEC Chairman Gary Gensler has yet to formally accept Ether as a commodity, despite acknowledging Bitcoin as one.
  • Lubin highlights Bill Hinman’s 2018 lecture, suggesting widespread SEC agreement that Ether is not a security.

During an interview with CNBC, Consensys creator Joseph Lubin recently shared his insights on Ethereum (ETH) and its classification. Lubin referred to previous statements from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to support his argument that Ethereum should be categorized as a commodity.

Notably, he pointed out SEC chairman Gary Gensler’s acknowledgment of Bitcoin as a commodity, while highlighting that Gensler has yet to accept Ether in the same manner formally.

Lubin drew attention to a lecture by former SEC official Bill Hinman in 2018, where he declared Ether not to be a security. He emphasized that 18 of Hinman’s colleagues collaborated on the speech, implying a consensus within the SEC at the time. Lubin indicated that while some regulators may still be deliberating on Ether’s status, he regarded their hesitancy as insignificant.

Moreover, Lubin delved into the advancements within the Bitcoin sector, emphasizing the importance of initiatives aimed at “cleaning up the CeFi rot.” Centralized finance, commonly called CeFi, has been criticized due to its deviation from the decentralized principles of cryptocurrencies. Lubin highlighted the successful innovations and launches in 2022, illustrating the positive trajectory of the Bitcoin ecosystem.

With the ongoing discussions surrounding Ethereum’s classification, Lubin’s insights shed light on the regulatory landscape and its impact on cryptocurrencies. While Gensler’s stance on Ether remains uncertain, Lubin’s reference to Hinman’s lecture suggests widespread agreement within the SEC regarding Ethereum’s non-security status. Lubin’s optimistic outlook on the future development of the Bitcoin sector indicates the positive outcomes achieved in 2022 as the industry strives to align with the decentralized ethos.

Joseph Lubin’s recent interview with CNBC addressed Ethereum’s classification as a commodity and shed light on the ongoing regulatory debates. Lubin’s remarks highlighted the significance of previous SEC statements and the need for a clear stance on Ether’s classification.

Furthermore, Lubin emphasized the positive advancements within the Bitcoin sector, showcasing the industry’s efforts to address concerns surrounding centralized finance. As the cryptocurrency landscape evolves, regulatory clarity and technological innovation remain critical focal points for industry participants and observers alike.

The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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