Joseph Lubin says he is not concerned about the SEC threats.
Ethereum co-founder Joseph Lubin said he was “completely unconcerned” with the latest news that Ether has drawn the attention of the Securities and Exchange Commission.
You will recall that reports from the Wall Street Journal last week informed the public that the SEC was debating whether to regulate ether as a security.
Lubin confirmed what Gary Gensler, former chairman of the CFTC, said last week about the similarities of Ripple and Ether with securities. Afterward, he said, “The fact that many regulators understand what Ethereum means makes us comfortable.”
Is ether a commodity or a security?
Ether is the second most valuable cryptocurrency in the world. It was developed on the sophisticated Ethereum network. The network is decentralized and open source. It uses blockchain technology to enable smart contracts.
Just like with other cryptocurrencies, there are no clear regulations with Ether. At the same time, there is no clear definition of cryptocurrencies. While the SEC claims that cryptocurrencies are securities, the CFTC claims that cryptocurrencies are commodities.
In Lubin’s opinion, neither the SEC nor the CFTC are correct in their definition of cryptocurrencies. He says that cryptocurrencies are neither commodities nor securities.
“The cryptocurrency community does not consider ether a cryptocurrency. We see it as crypto fuel or as crypto commodity. “
How can ether be regulated?
According to Lubin, ether is the fuel that feeds the decentralized apps on the Ethereum blockchain. Every time a developer wants to use resources from the network, he has to pay with ether. Ether is therefore the fuel in the Ethereum economy.
With no gasoline or oil used for real-time payment in today’s world, Lubin believes there is no need to regulate ether at all.
While the Ethereum community believes there is no need to regulate ether, news of the SEC’s plans to regulate ethers like stocks has lowered the price of ether by 6%.