thecoinrepublic.com
- 1 Jack Dorsey created a controversy by answering “Yes” to an ‘Is Eth security?’
- 2 The controversial statement comes amid the SEC’s crackdown on the crypto.
Yesterday, SEC’s lawsuits rattled the industry. Someone asked the question of whether ETH is a security jack, to which he responded Yes. This conversation caught the eye of Udi Wertheimer, a Bitcoin Ordinals developer at Taproot Wizards.
Dorsey’s “Yes” caught the eye of a Bitcoin Ordinals developer, who inferred him as a clown in a June 6 Tweet.
clowns. pic.twitter.com/S8AiJwuMem
— Udi Wertheimer (@udiWertheimer) June 6, 2023
ETH is a Security: Jack Dorsey
The recent crackdown by the SEC on the crypto industry concerning securities issues is not welcomed by many. In a recent lawsuit against the world’s biggest crypto exchange regarding unregistered securities, the SEC named ten tokens to be treated as crypto asset securities. The list includes ADA, FIL, SOL, MATIC, MANA, SAND, ALGO, COTI, AXS, and ATOM.
The financial watchdog also filed a lawsuit against crypto exchange Coinbase after serving it a Wells Notice in March. These situations increase the gravity of Jack Dorsey’s acceptance of ETH as security.
– Coinbase on-boarded millions to bitcoin
— Udi Wertheimer (@udiWertheimer) June 6, 2023
– Minted many multi-millionaires by giving them trusted access to Bitcoin early on
– Helped onboard institutions such as MicroStrategy
Seeing laser-eye maxis cheering as the SEC tries to take Coinbase down makes me sick to my stomach
The Twitter war intensified when Dorsey Tweeted an old video of the United States Securities and Exchange Commission (SEC) chair Gary Gensler as a Massachusetts Institute of Technology (MIT) professor in 2018. In the video, he can be heard saying that ETH was now “sufficiently decentralized” and should not be treated as a security.
Being sued by the SEC used to mean you probably did something wrong. Now it means you're probably doing something right.
— Cameron Winklevoss (@cameron) June 6, 2023
The battle intensified when the strategy advisor with Tether and investment management firm VanEck, supported Wertheimer’s comment—stating that Ethereum’s transition from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) with the hard fork Merge may have changed the fact pattern. He also pointed out that “sufficiently decentralized” can not be a factor in deciding whether a token is a security.
Jack then tweeted a screenshot of a 2015 Tweet from Coinbase CEO Brian Armstrong, where he cited altcoins as a distraction. Strike founder Jack Malllers entered the ring when Dorsey posted a video of him arguing Armstrong’s distraction comment.
Coinbase should pivot back to being focused on #Bitcoin pic.twitter.com/RFKzKTKMko
— Pierre Rochard (@BitcoinPierre) June 6, 2023
Interestingly, in 2021, when Jack was the man in charge of the micro-blogging site, the company sold 140 Non-Fungible Tokens (NFTs) based on Ethereum. But the possibility of investment in Ether was denied at the time. In August 2021, Dorsey once again tried to strike with a comment that Ethereum alone couldn’t disrupt big tech.
Former Twitter CEO has funded a decentralized Twitter killer network Nostr which is supposed to integrate Bitcoin Lightning-based payment system based on the Damus platform.
SEC’s recent blow on the major players of the crypto industry, crypto exchange Coinbase, and the world’s biggest crypto exchange with lawsuits regarding unregistered securities. This crackdown on the industry will affect over $100 Billion worth of tokens in the market. Moreover, the financial watchdog has its eyes on around 67 tokens which shall soon be treated as securities.
In the Coinbase suit, the SEC named ten cryptocurrencies to be classified as securities, and similarly. The SEC slapped 13 charges against Binance. In February 2023, the financial watchdog labeled 16 crypto assets as securities when it charged Terraform Labs.