It’s no surprise that the U.S. Securities and Exchange Commission (SEC) is waging a campaign against the cryptocurrency sector. According to Ethereum co-founder Joseph Lubin, the aim is to control the industry and the flow of capital, driven by the fear that they could escape the regulator’s oversight.

Is the SEC concerned about the innovation presented by cryptocurrencies ?

Joseph Lubin co-founded Ethereum (ETH) alongside Vitalik Buterin, and he currently leads the blockchain company Consensys, known for creating the MetaMask wallet. According to him, the SEC’s recent actions are not coincidental. Last week, it was revealed that the U.S. financial watchdog has secretly considered ETH a “security” for at least a year… without clarifying this to the crypto community.

Consensys, Ripple, and others criticized the SEC for its lack of clarity, leading to lawsuits. Joseph Lubin mentioned this at London’s Digital Asset Summit :

“They engage in strategic actions instead of opening discussions and establishing clear rules.”

Why such relentless pursuit ?

Crypto-currencies have become a campaign issue in the USA, with the Republican camp now very pro-crypto. Meanwhile, the Democrats have begun to distance themselves from the sector, especially after the big fall of FTX, which had ties to the Democratic Party.

Beyond these political considerations, cryptocurrencies themselves pose a threat to the SEC, according to Joseph Lubin :

“I think they’re afraid of the attention and capital that’s going to come into our ecosystem, given that it’s improving dramatically in terms of scalability and ease of use.”

This issue extends beyond the SEC, involving the U.S. banking system, which could clash with the continued growth of cryptocurrencies :

“The SEC probably doesn’t want a wave of innovation that will really transform the landscape.”

Regardless, the SEC does not seem ready to let go of the issue. This week, Gary Gensler reiterated his mistrust of the crypto industry, stating that it is riddled with scams and frauds. He chose not to comment on Ethereum’s status and its asset, ETH, once again refusing to confirm whether or not it’s a “security.”

👉 Also in the news – Bitcoin: Is the rough patch almost over ?

Source : CoinTelegraph, CNBC

Image : Ivo Näpflin by Wikimédia Commons (CC BY)