Ethereum co-founder Joseph Rubin revealed that the SEC has stealth classified ETH as a security.

adminMay 10, 2024

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Joseph Lubin, CEO of Metamask Developers ConsenSys Co-founder of Ethereum The Securities and Exchange Commission (SEC) announced that it has classified ETH as a classified security.

“The SEC appears to have reclassified Ether as a security without informing anyone of the fact,” Lubin said while speaking at the FT Live Crypto and Digital Asset Summit in London. “They are taking a series of strategic enforcement actions rather than public discourse and clear rule-making.”

Joseph Lubin said the SEC aims to create FUD for the cryptocurrency industry.

Last April, ConsenSys went on the offensive and sued the regulator after receiving a Wells notice from the SEC.illegal seizure of power” Regarding the possible classification of Ethereum as a security. Rubin said that through this lawsuit, the company aims to obtain legal clarity from U.S. courts regarding the security status of ETH.

This comes after the Commodity Futures Trading Commission (CFTC) previously classified Ethereum as a commodity.

According to Rubin, the regulator’s enforcement actions are aimed at creating fear, uncertainty and doubt in the cryptocurrency industry. Speaking specifically about ConsenSys, he said the SEC’s actions were an “attempt to paralyze” and drive Metamask developers overseas.

“This isn’t just about protecting digital assets, it’s about protecting the future of American innovation. Game-changing technologies should not be held hostage by overzealous financial regulators.” – @ethereumjoseph today @FThttps://t.co/9yMZT3cIlb
— Consensys (@Consensys) May 7, 2024

Joseph Lubin said the SEC and banks are afraid of asset movement into the DeFi sector.

Lubin said the possibility that customers in the banking industry could move their assets into the decentralized financial sector threatens traditional financial institutions and regulators.

“I think they are concerned that too much attention will be drawn to our ecosystem,” Lubin said of the SEC. “The SEC probably doesn’t want to see a wave of innovation that would really change the (financial) landscape.”

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