24 C
New York
Friday, July 19, 2024

ETH Clearly a Commodity According to Ethereum Co-Founder Joseph Lubin

Must read

Joseph Lubin (one of Ethereum’s co-founders) said it is clear that Ether (ETH) – is a commodity and not a security.

Some regulators in the USA, including the SEC, have been somewhat uncertain regarding the coin’s status.

No Doubt That it is a Commodity

In a recent interview for Bloomberg, Lubin said it is a “forgone conclusion” that ETH should be classified as a commodity, or in other words, treated as gold, oil, natural gas, and other items. He also reminded that multiple watchdogs have stated that the token should not be considered a security.

“Regulators have spoken. The SEC has spoken. Bill Hinman made a speech, I think it was in mid-2018. It was disclosed that I think 18 of his colleagues at the SEC worked with him on the speech, so the SEC actually spoke. The CFTC has spoken very crisply a number of times that they consider ETH a commodity and not a security.”

Joseph Lubin
Joseph Lubin, Source: Forbes

He said there are still a few regulators who have not recognized the “fact” that the coin should join the commodities list. “I don’t know why that’s the case, and ultimately, that just doesn’t matter,” he added.

It is worth noting that the positions displayed by the CFTC and the SEC over the years have been highly controversial. The former’s Chairman – Rostin Behnam – suggested in October 2022 that BTC and ETH are commodities, not securities.

ADVERTISEMENT

However, he changed his vision a few months later, maintaining that the only digital asset that could categorize as a commodity is Bitcoin.

Gary Gensler’s Stance

The Chairman of the SEC – Gary Gensler – has been even more indecisive on the matter. A newly-surfaced video that dates back to 2018 showed that he described several cryptocurrencies, including BTC and ETH, as “not securities.”

A few years later, though, he claimed the only digital asset that could be viewed as a commodity is Bitcoin, refusing to comment on the status of other tokens.

Gensler avoided a direct explanation when questioned by the House Financial Services Committee in April this year about whether the SEC considers ETH a security or a commodity. Instead, he gave imprecise answers without specifying in detail.

The US regulator has recently filed lawsuits against two of the heavyweights of the crypto industry – Binance and Coinbase. It claimed it offered trading services with unregistered securities, including BNB, BUSD, SOL, MATIC, ADA, and others. Interestingly, the Commission did not include ETH in that list.

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

More articles

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 comments
Inline Feedbacks
View all comments

Latest News