Ethereum co-founder and cryptocurrency billionaire Joseph Lubin has expressed concerns about the US Securities and Exchange Commission's (SEC) approach to regulating the cryptocurrency industry. Lubin argues that the SEC's current stance could potentially “cripple” the industry's growth.
Lubin explained that the SEC appears to have reclassified Ethereum as a security without informing the public. The move has raised concerns specifically about ETH spot ETFs, which the SEC fears could flood the cryptocurrency ecosystem with excessive interest and capital.
The SEC also alleged that popular cryptocurrency wallets Coinbase and MetaMask acted as brokers. Lubin warns that this sets a dangerous precedent. “The SEC is now scouring the GitHubs of software developers who don’t even develop financial applications to find out which products can be classified as brokerage firms,” Lubin said.
Lubin believes the SEC's current regulatory approach is an “attempt to paralyze” the crypto industry. He argues that the SEC does not want Ethereum and other cryptocurrencies to shape the banking landscape.
Additionally, Lubin warns that the SEC's anti-crypto stance could cripple Ethereum's growth in the US, hindering acquisition and development. He argues that irrational regulations must be resisted for the sector to grow.
*This is not investment advice.