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Crypto is a major American problem, says Consensys’ Joe Lubin
AUSTIN, TEXAS – Ethereum co-founder Joseph Lubin is taking the fight to the U.S. Securities and Exchange Commission. At the end of April, his company Consensys, decided to preemptively sue the US securities regulator after receiving what’s called a Wells notice — or an indication that the agency is building a case against a company.
On the main stage at Consensus 2024 on Wednesday, the longtime crypto advocate gave some insight into what Consensys is trying to get out of its lawsuit filed “in the great state of Texas.” Namely: regulatory clarity, preservation of free crypto markets, and a resolution that open source developers will not be targeted.
“What we’re trying to achieve is the freedom to innovate,” Lubin said on stage. “We have done our best to balance providing access to the applications with the need to be a regulated financial institution. We’re pretty sure we’ve done it right and will continue to do it right,” which is why the SEC’s recent interest in Ethereum is so concerning.
Lubin suggested that the SEC has begun targeting Ethereum’s biggest players like decentralized exchange Uniswap, the nonprofit Ethereum Foundation and major development studio Consensys precisely because their efforts challenge potential authority and the “vested interests” of regulators and legislators.
“Ethereum represents an existential threat to the weight of life of those who prefer to perpetuate the system and be top-down control,” Lubin said, later adding that crypto is already changing “the structure of society.”
“We need some sort of relief from command and control imposed from above, because it’s not working as well as it should,” he added.
At the same time, Lubin said crypto has crossed “the chasm” in American politics, which has become an increasingly popular topic of discussion among speakers. For example, CEO Tom Farley of Bullish (which owns CoinDesk) and New York Stock Exchange Chairman Lynn Martin agreed on stage that in 10 years, crypto is unlikely to remain a partisan issue.
Likewise, Lubin noted that former President Trump’s embrace of crypto and recent court victories have led to a sea change in how it is evaluated politically. But he stressed the importance of talking to “all parties that currently hold power,” even though many crypto players are “more interested in moving beyond current political constructs” through decentralized technology.
“Most people who benefit from technology realize that decentralization is consistent with American principles such as free market capitalism and democracy,” Lubin said.