Mediaboss Marketing

Ethereum co-founder Joseph Lubin says the strength of the crypto ecosystem has never been better or stronger. He believes more clarity from regulators would be helpful for the crypto industry. I think our industry has suffered from having two major factions lumped into one: the money-crypto faction and the tech-crypto faction, he explained.

Ethereum co-founder Joseph Lubin discussed the state of the crypto ecosystem, regulation, and whether ether (ETH) is a security in an interview with CNBC last Wednesday.

The strength of our ecosystem has never been better or stronger, he began. While noting that There are certainly headwinds some microeconomic, financial headwinds out in the world, as well as banking issues for a small number of companies in the crypto space, he emphasized: The sizes of the conferences that are going on in Paris and Denver and Los Angeles have never been bigger. The Ethereum co-founder added:

Once the builders come into our ecosystem to build essentially an alternative economy, they dont leave. The speculators run in and they run out, but the building has never been better.

Commenting on why the prices of bitcoin and ether have been rising, he said: Because theyre sound. Bitcoin is sound money. Ether is ultrasound money the development, the use cases, the usability, the scalability in the Ethereum ecosystem its never been better. Its accelerating. Lubin also noted that the possibility of the Federal Reserve hiking interest rates less aggressively in the future has helped boost the prices of cryptocurrencies. Its an inflation hedge, he stressed.

Regarding cryptocurrency regulation and the aggressive enforcement actions by the U.S. Securities and Exchange Commission (SEC), the Ethereum co-founder opined:

I think more clarity, being more explicit would be helpful to our industry. I think our industry has suffered from having two major factions lumped into one: the money crypto faction and the tech crypto faction, which is just building decentralized protocols infrastructure.

While noting that Money crypto absolutely should be regulated and Money crypto people issued tokens that are rightly seen as securities, he argued: Tech crypto people are just technologists. We are just building infrastructure that the traditional economy can use, and our economy can use, and you dont want to regulate innovation.

Lubin also commented on regulators alleging that ether is a security. Responding to the claim made by the New York Attorney General in its lawsuit against crypto exchange Kucoin that ETH is a security, the Ethereum co-founder said: Anybody can say anything, it doesnt make it true.

SEC Chairman Gary Gensler has stated several times that all crypto tokens besides bitcoin are securities because theres a group in the middle and the public is anticipating profits based on that group. Lubin argued:

People buy barrels of oil with the expectation of profit.

When asked whether he is confident that ether is not a security, the Ethereum co-founder replied: I dont think theres any point to speculate on something that is extremely unlikely.

There are differing opinions among U.S. regulators about whether ether should be classified as a security. SEC Chair Gensler believes that ETH is a security, while the chairman of the Commodity Futures Trading Commission (CFTC) has stated multiple times that it is a commodity. However, both regulators agree that bitcoin is a commodity.

What do you think about the statements by Ethereum co-founder Joseph Lubin? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

View post:

Ethereum Co-Founder Says Crypto Ecosystem Has Never Been Better or Stronger Regulation Bitcoin News - Bitcoin News