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Cryptocurrency RegulationDeFiETF (Exchange Traded Fund)Ethereum (ETH)NewsUniswap (UNI)

Consensys Chief Considers Ethereum ETF Approval by SEC a ‘Giant Political Issue’

Ethereum co-founder and Consensys chief executive Joseph Lubin predicts the SEC will approve 19b-4 Ether ETF applications, though he expects an extended wait for their listing. 

The executive considers that the early-stage bids to unveil the spot Ethereum exchange-traded funds (ETFs) are certain to secure the green light from the Securities and Exchange Commission (SEC). 

ETH ETF Approval Imminent

Lubin delved into the Ethereum ETF approvals during the DappCon event in Berlin, Germany, and expressed optimism that several 19b-4 applications led by BlackRock will secure the coveted SEC greenlight. Nonetheless, the launch of Ethereum ETFs will witness a protracted process before going public. 

Lubin considers the 19b-4 filings from the exchanges hope, which careful for the Ethereum ETFs a do, redeal. The Consensys chief executive believes that the S1s filings will take longer, with the process becoming a giant political issue. 

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Lubin admitted that the representatives from Donald Trump’s presidential campaign had engaged the crypto ecosystem participants in the past two months. 

The talks were devoted to formulating a viable strategy given the savvy supporters of the rival Democratic side. Lubin considers that the presidential campaign and other contenders desire to appear pro-crypto. 

Lubin pointed out that the US securities watchdog is pressured to embrace a neutral stance as the country edges closer to the November presidential elections. The Ethereum co-founder anticipates that the potential approval of Ether ETF will transform the SEC into a thoughtful regulation.

Lubin explained that the 180-turn by the regulator amid positive pro-crypto legislative development is the awareness that digital asset holders constitute a crucial voting block. He added that the possibility of 40% – 60% of the crypto holders voting is enough awareness for the politicians to avoid stomping on their portfolios and indirect exposure via the institutions and pensions funds. 

📰 Also read:  SEC Confirms Ethereum Not Security Amid Ethereum ETF Approval Process

Consensys Files Offensive Lawsuit in Fight Against SEC

Lubin-led Consensys confirmed in April that it was initiating a lawsuit to challenge the SEC and the agency’s concealed move to reclassify ETH into security.  

Lubin hailed the dealings of the Jay Clayton-SEC as more constructive, with conversations providing a participative discourse for cryptocurrencies. The discussions featured realizing definitive criteria for classifying crypto as securities. 

The executive laments that the situation turned from a participative context to an enforcement-oriented space when Gary Gensler assumed the reins as SEC chair. He singled out government and high-level banking stakeholders who co-opted the Ethereum ecosystem. 

Lubin defended the hypothesis, explaining that co-opting implies transforming into American-style decentralization and compelling registration. He elaborated that such presented opportunities to introduce backdrops into cryptography possibly.  

Lubin reflected on the legal contest that has been building behind the scenes with Consensys complying with SEC requests, resulting in over 100,000-page documentation filed with the regulator. 

Lubin explains that the basis for the legislative suit was inevitable in the realization that SEC was shifting focus over MetaMask. Besides focusing on the Ethereum protocol, the SEC is directing its guns on staking, proof-of-stake consensus, and developers. 

Lubin explained that the impetus for Consensy’s offensive suit arose from the ongoing suits against Coinbase and Binance, alleging they offered unregistered securities. Also, the Wells notice served to Uniswap was indicative that SEC was mulling an enforcement action against Ethereum.  

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The awareness of potential Wells’s notice and suit prompted Consensys to craft the offensive action. 

Lubin endorsed the action as it positions Consensys on the front foot to seek critical answers regarding the SEC’s actions. The suit seeks a definitive stance from Gensler over Ether’s classification as either security or commodity. 

Lubin lamented the confusion that has punished the Ethereum ecosystem as the status is swapped between security and commodity. He blamed the SEC for the confusion while the agency had already internally and secretly labeled ETH security. 

SEC Gaslighting Ethereum in the US 

Lubin indirectly faulted SEC’s stance, which indicates the regulator’s intention to regulate tech and developers. The executive considers such scope as an overreach of the SEC’s authority to regulate securities.  

Lubin accuses the Gensler-led Commission of gaslighting the digital assets sector and perpetuating the uncertainty cloud. He assured that Consensys is ready to spend millions of dollars as it takes on SEC in a legal battle.


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Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

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