Consensys Founder Asserts Ethereum (ETH) as a Commodity

Joseph Lubin, the founder of Consensys and co-founder of Ethereum, believes that Ethereum’s native cryptocurrency, Ether (ETH), should be classified as a commodity. In a recent CNBC interview, Lubin discussed his stance and provided insights into the regulatory landscape surrounding Ether. Let’s delve into the key points of the interview.

Regulatory References: SEC and CFTC

Lubin during his interview referred to past statements made by regulatory bodies, particularly the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), to support his argument. While the SEC has recognized Bitcoin as a commodity, its chairman, Gary Gensler, has yet to explicitly acknowledge Ether as such. 

Notably, Lubin drew attention to a significant speech by former SEC official Bill Hinman in 2018, which declared Ether as not being a security. He further highlighted that the speech involved collaboration from 18 of Hinman’s colleagues, indicating a consensus within the SEC. Although a few regulators may still hold a different view, Lubin downplayed their impact on the overall classification of Ether.

Was the move to clean up the CeFi space Beneficial? 

During the interview, Lubin also reflected on the progress made within the cryptocurrency industry over the past year. He pointed out successful developments and launches that took place in 2022, signaling the ongoing growth and maturation of the industry. One notable aspect Lubin emphasized was the importance of addressing issues within the centralized finance (CeFi) sector. CeFi has faced criticism for deviating from the decentralized ethos of cryptocurrencies. Lubin’s remarks suggested that initiatives aimed at cleaning up the CeFi space have been highly beneficial for the industry as a whole.

Official Classification Pending

Despite Lubin’s arguments and the supportive evidence he presented, it is important to note that his statements do not hold the power to officially classify Ether as a commodity. The ultimate recognition from Gary Gensler and the SEC is still pending. As the industry eagerly awaits a formal decision, the classification of Ether will continue to be a topic of interest and speculation.

In conclusion, Joseph Lubin’s belief that Ether should be classified as a commodity brings attention to the regulatory landscape surrounding Ethereum’s native cryptocurrency. While he highlighted references from the SEC and the CFTC to support his stance, the official classification of Ether remains undecided.