Crypto Is a Core American Issue, Consensys’ Joe Lubin Says

AUSTIN, TEXAS – Ethereum co-founder Joseph Lubin is taking the fight to the U.S. Securities and Exchange Commission. In late April, his firm, Consensys, decided to file a preemptive lawsuit with the U.S. securities watchdog after receiving what is known as a Wells notice, or an indication that the agency had filed a lawsuit against a firm.

On the main stage at Consensus 2024 on Wednesday, the longtime crypto advocate offered a glimpse into what Consensys is trying to achieve from its lawsuit in the “great state of Texas.” Namely: regulatory clarity, protection of free markets in crypto, and a solution where open source developers won’t be targeted.

“What we’re trying to achieve is the freedom to innovate,” Lubin said on stage. “We are doing our best to walk the fine line between offering access to applications and the need to be a regulated financial institution. “We’re pretty confident that we’ve done it right and continue to do it right,” which is why the SEC’s recent interest in Ethereum is so concerning.

See also: ‘It’s Safe to Say the SEC Is Investigating Ethereum’: Consensys’ Bill Hughes Talks Crypto Law

Lubin suggested that the SEC began targeting the biggest players in Ethereum, such as decentralized exchange Uniswap, the nonprofit Ethereum Foundation, and major development studio Consensys, because their efforts challenge the potential authority and “vested interests” of regulators and lawmakers.

“Ethereum represents an existential threat to the weight of life of those who choose to maintain the system and be a top-down control,” Lubin said, later adding that cryptocurrency has already changed the “structure of society.”

“We need some kind of liberation from top-down command and control because it’s not working as well as it should,” he added.

But Lubin also said cryptocurrency is crossing the “cliff” in American politics and that it is becoming an increasingly popular topic of conversation among speakers. For example, Tom Farley, CEO of Bullish (which owns CoinDesk), and Lynn Martin, President of the New York Stock Exchange, agreed on stage that cryptocurrency is unlikely to remain a partisan issue in 10 years.

Read more: Chairman Says NYSE Would Consider Crypto Trading If Regulatory Picture Were Clearer in Consensus 2024

Similarly, Lubin noted that former President Trump’s embrace of crypto and recent legal gains have led to a major shift in how it is viewed politically. But while many in crypto are “more interested in moving beyond existing political structures” through decentralized technology, he stressed the importance of talking to “all parties that currently hold power.”

“Most people, empowered by technology, recognize that decentralization is consistent with American principles such as free market capitalism and democracy,” Lubin said.