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Ethereum co-founder Joe Lubin says Consensys is willing to spend millions of dollars to challenge the Securities and Exchange Commission's (SEC) enforcement campaign against the broader Ethereum ecosystem in the United States.

Speaking exclusively on the Decentralize with Cointelegraph podcast, Lubin unpacked the finerdetails of Consensys decision to take preemptive legal action against the SEC. Listen to the full podcast below.

The Ethereum co-founder believes the financial and operational costs incurred by the cryptocurrency ecosystem due to the SECs regulate by enforcement policies are hard to quantify.

Were all in. But we should think about the costs weve already incurred and the costs that our entire ecosystem keeps incurring, Lubin told Cointelegraph.

The Consensys CEO said the SEC had been carpet bombing the entire ecosystem with enforcement actions, forcing companies to search for and produce an enormous amount of documents to appease the U.S. securities regulator.

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Lubin said that small startups in the cryptocurrency space threatened with legal action by the SEC are being hamstrung by an inability to raise money:

Lubin revealed that Consensys was preparing to pay tens of millions of dollars in legal fees to take on the SEC for determining internally and secretly that Ether (ETH) is a security.

Everybody keeps saying its a commodity. Yet he cant bring himself to say that its a security. Hes punishing everybody in our ecosystem as though theyve already determined internally, secretly, that it is a security, Lubin added.

The Ethereum co-founder also discussed Ethereums ongoing roadmap, the importance of modularization, and the layering approach for scalability. He explained how the technologys scalability has matured, enabling diverse applications and broader adoption.

Mature engineering systems modularize for effectiveness and efficiency. Our ecosystem is modularizing and layering, and thats great. The pains that some experience are around this divergent phase of achieving scalability, Lubin explained.

The Consensys CEO said that Ethereum has achieved horizontal and vertical scalability, which will eventually allow for more layers of complexity.

Diversity of solutions is an important step in allowing Ethereums infrastructure to converge, allowing software development kits to enable chain abstraction and single coherent view of the ecosystem.

Lubin said the end goal is an intents-based architecture in which the many parts of Ethereums network seamlessly carry out the necessary communications and transactions to meet a users specific wants.

Youre talking to your wallet and saying, I want some Solana tokens, or I want to play a game. It just goes ahead, does all the necessary bridging and swapping, and puts the requisite number of tokens into your MetaMask, Lubin explained.

This eventuality will require artificial intelligence (AI) tooling and solver networks and highly scalable, highly diverse machinery underneath. Lubin drew comparisons to the internet of today, which runs on a wide variety of different kinds of databases for different purposes.

The Ethereum co-founder also commented on staking, the return on investment for validators, and the inherent risks. Lubin unpacked how stakeholders perceive staking and its importance in the Ethereum ecosystem.

EigenLayer was another point of discussion, with Lubin explaining how innovations like restaking and elastic security resources will transform startup operations in the blockchain space.

The Consensys CEO also discussed the Solana (SOL) ecosystem and how Bitcoin (BTC) shaped his journey into the world of cryptocurrencies and blockchain.

Lastly, he recapped Vitalik Buterins ongoing influence on the Ethereum ecosystem and his broader vision. Joe highlights Vitaliks role in transitioning Ethereum and his involvement in global initiatives for technological adoption.

Listen to the full episode of Decentralize with Cointelegraph on Cointelegraphs podcast page, Spotify, Apple Podcasts or your podcast platform of choice. And dont forget to check out Cointelegraphs full lineup of other shows!

Disclaimer: This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Exclusive: Joe Lubin unpacks SEC battle, Ethereum roadmap and Vitalik Buterin - Cointelegraph