Joseph Lubin says he is unconcerned about the threats from SEC.
Joseph Lubin, co-founder of Ethereum said that he feels “absolutely unconcerned” about the latest News that Ether has captured the attention of the Securities and Exchange Commission.
You’ll recall that reports from Wall Street Journal, last week, informed the public that’s SEC was debating whether to regulate Ether as security.
Lubin acknowledged what Gary Gensler, former chairman of the CFTC, said about Ether last week about the similarities Ripple and Ether shared with securities. After that, 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 designed on the sophisticated Ethereum network. The network is a decentralized and open source. It uses the blockchain technology to enable smart contracts.
Just like other cryptocurrencies, no clear-cut regulations are surrounding Ether. At the same time, there is no clear definition of cryptocurrencies. While the SEC claims cryptocurrencies are securities, the CFTC claims cryptocurrencies are commodities.
In Lubin’s opinion, neither the SEC or the CFTC are correct in their definition of cryptocurrencies. He says that cryptocurrencies are neither commodities or securities.
“The cryptocurrency community doesn’t consider Ether a cryptocurrency. We see it as a crypto-fuel or a crypto-commodity.”
How Can Ether be Regulated
According to Lubin, Ether is the fuel that feeds the decentralized apps on the Ethereum blockchain. So, each time a developer wants to use resources from the network, they will be required to pay with Ether. Ether is thus the gasoline in the Ethereum economy.
Since no form of gasoline or oil is used for real-time payment in today’s world, Lubin believes that there is no need to regulate Ether at all.
Even if the Ethereum community thinks it’s not necessary to regulate Ether, the news about the SEC’s plans to regulate Ether like stocks brought the price of Ether down by 6%.