Co-founder of Ethereum Joseph Lubin told CNBC in an interview that the second-largest cryptocurrency by market cap is not a security. He said the asset is more like a highly liquid commodity.
“I don’t think there is much point in speculating about something that’s extremely unlikely [a declaration that Ethereum is a security]. People buy barrels of oil with the expectation of profit,” Lubin said.
He added that “anyone can say anything, but that does not make what is said true.”
In March, the head of the U.S. Securities and Exchange Commission, Gary Gensler, suggested that tokens on the Proof-of-Stake consensus could be considered securities under US law.
In September 2022, Ethereum moved to PoS as part of the activation of The Merge upgrade. After that, Gensler allowed the possibility that PoS-based cryptocurrencies could be deemed securities.
Earlier, in February 2023, Lubin ruled out such a possibility. He said this would trigger a massive backlash from the crypto community, various policymakers and certain regulators.