ConsenSys founder publishes article: Ethereum and blockchain technology are threatened by Washington regulators

BlockBeats news, on May 10, Ethereum co-founder, ConsenSys founder and CEO Joseph Lubin published an article titled "Ethereum and blockchain technology are threatened by Washington regulators" stating that without legal authorization, the U.S. Securities and Exchange Commission (SEC) is arbitrarily reclassifying Ethereum from a commodity to a security in order to be able to enforce registration and other requirements related to securities (such as bonds, stocks and other investments) under its jurisdiction.

But Ethereum is obviously and logically not a security. On multiple occasions, the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have confirmed this, and ConsenSys' entire business model is based on this clear, previous regulatory consensus.

The SEC's regulatory upgrade violates the basic principle of separation of powers, according to which it is the duty of Congress to legislate and allocate jurisdiction over blockchains such as Ethereum.

More broadly, if the SEC wins, it will mean the end of the Ethereum blockchain in the United States because it makes Ethereum functionally inaccessible and unusable.