December 5, 2023

Joseph Lubin: “Ethereum and Bitcoin are not threatened by attacks from regulators”

Ethereum co-founder Joseph Lubin believes that Ethereum and Bitcoin — industry pioneerswho avoided claims from regulators, unlike new projects.

Joseph Lubin expressed his opinion in an interview,adding that regulatory authorities began to tighten conditions for new blockchain startups. Given that the number of new projects is constantly growing, they are required to comply with strict regulatory requirements and often comply with securities laws.

According to Lubin, in order to sell hisutilitarian token, the company must convince investors that the price of this token will increase over time. Such a forecast is based on the opinion of the developers and the issuing company, so the asset is actually sold as a security.

“It turns out that the company is not selling utility tokens, but tokenized securities, so the securities law cannot be avoided here,” — said Joseph Lubin.

Regarding Ethereum, Lubin emphasized itsuperiority over other new projects, calling it an innovator and pioneer. The founders of the project “caught the moment” when it was possible to sell ETH without wondering whether such a sale complies with regulatory requirements. At that moment, the cryptocurrency industry was in its “infancy” and was not regulated by anyone.

Lyubin added that now projects will not be able to simply announce the issuance of a utilitarian token so as not to register it as a security.

“Now even the most competitive anda technically advanced project may encounter regulatory problems. In addition, it will be very difficult for beginners to overtake Ethereum,” — Joseph Lubin said.

This month, Lubin expressed interest in working with China's state-owned cryptocurrency, and in June criticized Facebook's stable Libra due to weak decentralization.