The Future of Cryptocurrency Regulation: Insights from Ethereum Co-Founder
Date: 2023-09-14 Author: Dima Zakharov Categories: IN WORLD
Cryptocurrency Industry's Resilience:
Lubin believes that the cryptocurrency industry will emerge stronger from the ongoing regulatory war with the SEC. He anticipates that the United States will eventually embrace decentralized protocols, blockchain technology, and cryptocurrencies, setting an example for other nations to follow suit. According to Lubin, these technologies align with the fundamental values of the United States, and he expects much of the rest of the world to adopt a similar perspective.
Diverging Views from Lubin and Gensler:
One of the primary points of contention between cryptocurrency companies and the SEC is the classification of tokens as securities. SEC Chairman Gary Gensler asserts that a significant number of tokens should be considered securities, necessitating registration and licensing. However, Lubin disagrees with this perspective, emphasizing the importance of providing evidence before labeling tokens as securities.
Lubin has previously argued that Ethereum's native token, Ether (ETH), should be regarded as a commodity, akin to oil. He draws a parallel between people buying barrels of oil with the hope of making a profit and individuals investing in ETH for similar reasons, asserting that it should be viewed as a commodity rather than a security.
Impact on the U.S. Cryptocurrency Market:
The regulatory uncertainty surrounding cryptocurrencies has led many American crypto firms to reconsider their operations in the United States. This sentiment has been echoed by prominent figures in the industry, such as Mike Novogratz of Galaxy Digital, as well as market makers like Jump Crypto and Jane Street.
However, the partial victory of Ripple against the SEC in July has injected a degree of optimism into the cryptocurrency industry. The court ruled that XRP is not a security when sold to retail investors. Furthermore, in August, the District of Columbia Circuit Appeals Court delivered a verdict in favor of Grayscale Investments, denying the SEC's request to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF. These developments represent significant wins for the cryptocurrency industry in its ongoing battle with regulators.
