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Former Twitter CEO Jack Dorsey says Ethereum (ETH) is a security while supporting a Bitcoin-focused approach for Coinbase amid the SEC lawsuit.
In a noteworthy development, Jack Dorsey, the founder and former CEO of Twitter, has publicly stated his belief that Ethereum (ETH) should be classified as a security amid the latest lawsuit against the US-based crypto exchange, Coinbase, alleging the exchange’s unregistered operations.
Yes. https://t.co/PrMx7yugsU
— jack (@jack) June 6, 2023
In addition, given Coinbase’s entanglement with the US securities regulator, Dorsey, who is widely known as a Bitcoin (BTC) maximalist, agreed with a statement that the American exchange should pivot to a Bitcoin-only business model.
Specifically, Pierre Rochard, the VP of Research at Riot Platforms, a prominent Bitcoin mining firm, shared a 2015 tweet from Coinbase CEO in which he remarked:
“Ripple, Stellar, and Altcoins are all distractions. Bitcoin is way too far ahead. We should be focused on Bitcoin and sidechains.”
Quoting Armstrong’s statement, Rochard suggested that Coinbase should pivot back to being focused on Bitcoin, to which the former Twitter CEO expressed a 100% agreement.
💯 https://t.co/GEtVbHtk4L
— jack (@jack) June 6, 2023
Coinbase’s Case with the SEC
Interestingly, the discussion surrounding Coinbase’s focus on BTC occurred shortly after the US Securities and Exchange Commission (SEC) filed a lawsuit against the exchange.
The lawsuit accuses Coinbase of operating as an unregistered national securities exchange, broker, and clearing agency, as well as failing to register its crypto asset staking-as-a-service program.
This development particularly stirred the crypto community, given that the SEC had filed a civil action against Binance, a top rival of Coinbase, barely 24 hours before launching the movement against Coinbase, as reported by The Crypto Basic.
Industry leaders such as Charles Hoskinson, the founder of the Cardano network, have described the SEC’s recent action as a threat to financial freedom. Hoskinson particularly believes the SEC aims to replace mainstream crypto assets with a government-controlled CBDC.