SEC Stifling Innovation by Hindering Ethereum’s Potential in Banking: Joseph Lubin

cryptonews.com:

Ethereum Co-Founder Joseph Lubin launched scathing criticisms against the Securities and Exchange Commission (SEC) on May 9, accusing the regulatory body of deliberately impeding innovation and obstructing Ethereum’s transformative potential in the banking landscape.

Speaking at FT Live’s Crypto and Digital Assets summit in London, Lubin criticized the SEC’s approach, alleging that instead of fostering open discourse and providing clear regulatory guidelines, the SEC has opted for strategic enforcement actions, causing uncertainty within the cryptocurrency industry.

“The SEC probably doesn’t want to see a wave of innovation that will really transform the landscape,” he said.

Lubin’s remarks were made in light of Consensys’s decision to sue the SEC after receiving a Wells notice from the regulator. Lubin asserted that the SEC’s actions, such as reclassifying Ether as a security without transparent communication, were designed to instill fear and doubt, potentially driving cryptocurrency companies offshore.

“The SEC appears to have reclassified Ether as a security without telling anybody that that’s the case,” Lubin said. “They are going about a strategic series of enforcement actions rather than open discourse and clear rulemaking.”

Central to Lubin’s critique is the suspicion surrounding the SEC’s motives, particularly regarding its recent enforcement actions against Ethereum. Lubin suggested that the impending decision to approve Ether spot exchange-traded funds (ETFs) has spurred the SEC’s intensified scrutiny, fearing the potential influx of capital into the Ethereum ecosystem.