On a day once the price of Ethereum has been falling on reports that it could soon be controlled as investment protection, the cryptocurrency’s co-founder promptly denied that it ought to be.
Ethereum Co-Founder – Ether Doesn’t Need to Be Regulated
In reaction to a question from TheStreet in the Collision tech conference in New Orleans on Tuesday, ” Joseph Lubin explained that when he and Ethereum’s other creators were producing the platform and technology. They had been concerned that it might be regarded as a safety that would not be allowed to be marketed to unregistered investors at the U.S. Ethereum is the second-largest cryptocurrency behind Bitcoin, using a market value of roughly $65 billion.
“We spent a tremendous amount of time with lawyers in the U.S. and other nations, and are extremely comfortable that it is not security; it never was a safety,” said Lubin.
The price of Ether dropped as much as 6% on Tuesday morning after the WSJ reported the U.S. authorities were considering if cryptocurrencies, and Ethereum particularly, ought to be considered security and subject to oversight.
At present, the CFTC considers Bitcoin for a product, and consequently not subject to rules set by the SEC.
Lubin cited Gensler’s remarks in his answer to TheStreet, but ignored them saying “we’re comfortable that many regulators that matter understand exactly what Ethereum is.”
He continued that “we’re unconcerned about the present talks” and clarified that he and his co-founders have always believed Ethereum to merely be fuel for its performance and build-out of the Ethereum platform.
“Because all these different actors are supplying their resources to conduct the platform, you have to pay them for providing their tools,” Lubin said. This reimbursement, Lubin said, comes in the form of a little slice of Ethereum.
When asked by TheStreet that, if anyone, should regulate Ethereum, Lubin said that he did not believe any regulation required in any way.
“I think we already have a regulatory strategy; securities legislation in this country govern securities. In the event you neglect the Howey test, you are not a security,” Lubin said, referencing the 1946 Supreme Court decision that established standards for considering a trade an investment contract.
“That is a way of accessing shared computer tools, so I’m not sure Ether has to be regulated at all,” Lubin said.