There are ongoing efforts to classify Ethereum. As of now, a final decision has yet to be reached on whether or not it should be considered a security. Given the arguments, predicting the end result is challenging.
With recent noise about cryptocurrency regulation and events like lawsuits against cryptocurrency exchanges for offering unregistered securities, there have been differing views from experts and high-profile individuals on the status of specific cryptocurrencies. One of them is a recent comment by Jack Dorsey, the former CEO of Twitter, arguing that Ethereum is a security.
A Twitter user named Ali asked Jack if Ethereum is a security and Jack answered “Yeah.” Many people reacted to his comment, many of whom were offended and disagreed with him. While many commented that his ranking was irrelevant, many others referred to him as a clown.
Udi Wertheimer, a blockchain developer and consultant, reacted to Jack’s comment, calling him a clown. Jack responded to Udi’s tweet, asking for more information on his views. Udi then posted a 21-second video showing the SEC claiming in 2018 that Ethereum was already decentralized enough not to be a security.
https://twitter.com/udiWertheimer/status/1666080703648284672
Jack Dorsey’s Lack of Faith in the Ethereum Blockchain
The tweet about Ethereum being a security came at a critical time in the cryptocurrency industry when the topic of cryptocurrency regulations and whether or not specific cryptocurrencies are securities is on the rise. This is also one of the reasons why the particular tweet piqued people’s interest.
This is not the first time that Jack has made comments that do not align with the best interests of Ethereum. It has long been clear that Jack prefers Bitcoin and has no faith in the Ethereum project. He argues that Bitcoin will affect the way money is exchanged and that the payment solution can transform the financial system by promoting fairness and equal opportunity.
The CEO of Square has also criticized construction projects on Ethereum. In a comment he sent in response to Deso Protocol’s 2022 tweet, he said that Ethereum-based developers have at least a single point of failure, which makes the project unappealing to him.
Uncertainty Still Surrounds Ethereum Ranking
The SEC has sued several cryptocurrency companies for failing to register certain cryptocurrencies, including Ethereum, as securities. There are still ongoing efforts to assign a specific classification to Ethereum and other cryptocurrencies. No final decision has been made at this time, and no one can be sure how it will end. Ethereum may not be classified as a security and therefore not required to be regulated by the SEC, or vice versa.
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