Ethereum Co-Founder Says ETF Approval Changes Everything

Ethereum Co-Founder Says ETF Approval Changes Everything

There have been few weeks in the history of crypto that have seen as much progress as was seen last week.

On Wednesday, a crypto regulation bill received bipartisan support in Washington, DC. The next day saw the stunning approval of spot Ethereum ETFs at the 11th hour by the US SEC.

The shift

Joe Lubin, the Ethereum co-founder and CEO of Consensys, believes that both these events mark a seismic shift in the treatment of crypto in America.

He said that the SEC’s about-face where Ethereum is concerned would be particularly relevant moving forward. The entrepreneur said that this is a game changer for the entire crypto industry.

Lubin founded the Ethereum software company Consensys, which is now worth $7 billion. The company is currently embroiled in multiple legal battles with the SEC over the legal status of crypto.

However, he believes that the events this week have shown that crypto has moved to a higher status in the country’s power apparatus and this has changed the entire scenario.

He stated that it has now turned into a rather important political issue and that has taken center stage. He added that anyone wanting to win the elections has two options.

They would either want the blockchain decentralized protocol ecosystem in their favor, or not have the industry against them at least.

The SEC Ruling

As far as the SEC’s ruling regarding spot Ethereum ETFs is concerned, Consensys welcomed the decision. He referred to it as a step in the right direction.

However, it also said that the last minute approval highlighted the regulator’s ad hoc approach to the crypto industry.

According to Lubin, the last minute decision of the SEC to give approval was politically motivated. He said that it is possible that the White House may have requested or demanded said approval.

There had been election-related developments in the previous week. They likely resulted in political pressure from various crypto lobbyists in Washington.

The Future

It is likely that the SEC leadership still has the same stance towards crypto as it did a week earlier. This is evident from the silence of the regulatory agency.

However, it is possible that the political pressure may have become an obstacle in the Commission’s ongoing, aggressive legal crusade against crypto companies in the US.

This also includes Consensys, which had received a Wells Notice from the SEC. It is considered a warning of upcoming enforcement action.

Nonetheless, Lubin added that he does not plan on letting down his guard as yet. He stated that they still need to stay vigilant.

He went on to say that it would be wrong to assume they would not be attacked again. Consensys has also filed a lawsuit against the SEC.

The legal battle is related to Ethereum’s status. According to the company, the SEC considers it a security, even though it has not declared it so publicly.

However, the approval of the spot Ether ETFs means that the regulator may not necessarily regard it as a security.