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— Daniel Kuhn

Joe Lubin of ConsenSys asserts that cryptocurrency is a fundamental issue in America

Joseph Lubin, co-founder of Ethereum, is challenging the U.S. Securities and Exchange Commission (SEC). In late April, his company, ConsenSys, preemptively sued the SEC after receiving a Wells notice, which signals that the agency is preparing to take action against a firm.

During his appearance on the Mainstage at Consensus 2024 on Wednesday, Lubin outlined what ConsenSys hopes to achieve with its lawsuit filed in Texas. The goals include obtaining regulatory clarity, safeguarding free markets in the crypto space, and ensuring that open-source developers are not targeted by regulatory actions.

“We aim to secure the freedom to innovate,” Lubin explained on stage. “We’ve been striving to balance providing access to applications while avoiding being classified as a regulated financial institution. We believe we've managed this balance effectively, which makes the SEC’s recent scrutiny of Ethereum particularly concerning.”

Lubin suggested that the SEC has started focusing on key players in the Ethereum ecosystem, such as the decentralized exchange Uniswap, the Ethereum Foundation, and the major development studio ConsenSys. He implied that this targeting stems from the challenge these entities pose to the authority and “vested interests” of regulators and lawmakers.

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“Ethereum poses a significant threat to those who want to maintain existing top-down control systems,” Lubin stated, further noting that cryptocurrency is already reshaping societal structures. “We need a shift away from top-down command and control because it’s not functioning as effectively as it should.”

At the same time, Lubin observed that cryptocurrency has entered the realm of American politics, becoming a prominent topic among speakers. For example, Tom Farley, CEO of Bullish (which owns CoinDesk), and Lynn Martin, President of the New York Stock Exchange, both agreed on stage that in ten years, it is unlikely cryptocurrency will remain a partisan issue.

Lubin also pointed out that former President Trump’s support for cryptocurrency and recent judicial victories have significantly shifted the political landscape regarding its evaluation. He emphasized the need to engage with "all parties currently in power," despite the fact that many in the crypto space are more focused on transcending traditional political frameworks through decentralized technology.

“Most of those empowered by the technology understand that decentralization aligns with American values such as free market capitalism and democracy,” Lubin said.