Ethereum co-founder Joseph Rubin has hailed SEC Chairman Gary Gensler as “the shining knight of decentralization.”
Speaking at ETHDenver (ending March 5), Lubin spoke candidly about recent regulatory enforcement, citing Gensler as a catalyst for further decentralization.
Ethereum co-founder says SEC is doing a great job
Using the recent example of the SEC’s enforcement action against Kraken, Rubin said the exchange’s staking product is centralized and therefore provides security.
He added that when Kraken’s efforts generated profits to be paid to stakers, the claim that it was decentralized was not supported.
“If you advertise that you are very decentralized in a way that makes it sound like people are making money based on your efforts, that word alone can make it safe.” .”
under securities lawThe Howey Test determines whether a contract, scheme or transaction meets the definition of a security. It focuses on determining whether an investor paid for a common company in hopes of benefiting from the efforts of others.
Rubin said Gensler and the SEC “do a great job of driving projects in our ecosystem and fundamentally decentralizing themselves,” calling Gensler a “shining knight of decentralization.” By doing so, I penetrated that point.
On February 9, Kraken settled with the SEC, paying a $30 million fine, alleging it was operating an unregistered security service through a staking program.
The issue has taken staking providers by surprise. but, coin base said it stands ready to defend its staking program in court if necessary.
not everyone agrees
A history of perceived unjust enforcement actions and recent regulatory hoopla have drawn heat from the crypto community.
For example, Ripple CEO Brad Garlinghouse The silly claim that compliance can be achieved simply by registering. He said no such registration process exists, nor is it clear what constitutes a compliant registered token.
“Chairman Gensler continues to say that companies simply need to come in and register, but the truth is that there is no infrastructure in place for “registered tokens” to be traded, and that these tokens are There is no clarity as to what it is.“
SEC Commissioner Pierce echoed Garlinghouse’s opinion and said he was unsure whether a staking product could be registered. Among them, some open questions remain about how the staking program will be regulated, such as whether the staking program will be registered and whether individual tokens within the program will be registered. .
Similarly, with a blast at Gensler, @DecentFiJC Said. There’s a 0% chance he didn’t know about this,” referring to the questionable relationship between FTX and sister company Alameda.
It was said that Alameda had $65 billion A secret line of credit from FTX, funded by customers’ exchange deposits without their knowledge or consent.