There are ongoing efforts to classify Ethereum. As of now, a final decision is yet to be reached regarding whether it should be considered a security or not. Considering the arguments, predicting the final outcome is challenging.
With the recent noise about cryptocurrency regulation and events such as crypto exchanges being sued for offering unregistered securities, there have been varying views from experts and high-profile individuals about the state of some specific cryptocurrencies. One of them is a recent comment by Jack Dorsey, the former Twitter CEO, arguing that Ethereum is a security.
A Twitter user named Ali asked Jack if Ethereum is a security, and Jack responded “Yes”. Many people reacted to his comment, many of whom were offended and disagreed with him. While many commented that his classification was irrelevant, many others referred to him as a clown.
Udi Wertheimer, a blockchain developer and consultant, reacted to Jack’s comment, calling him a clown. Jack responded to Udi’s tweet, asking him for more information about his opinions. Then Udi posted a 21-second video showing the SEC claiming in 2018 that Ethereum was already sufficiently decentralized not to be a security.
— Udi Wertheimer (@udiWertheimer) June 6, 2023
Jack Dorsey’s Lack of Faith in the Ethereum Blockchain
The tweet about Ethereum being a security came at a critical time in the crypto industry when the topic of crypto regulations and whether specific cryptos are securities or not is on the rise. This is also one of the reasons the particular tweet piqued people’s interest.
This is not the first time Jack has made comments that don’t align with Ethereum’s best interests. For a long time, it has been clear that Jack prefers Bitcoin and has no faith in the Ethereum project. He holds that Bitcoin will impact how money is exchanged and that the payment solution can transform the financial system by promoting fairness and equal opportunity.
The Square CEO has also criticized building projects on Ethereum. In a comment he sent as a reply to Deso Protocol’s tweet in 2022, he said developers building on Ethereum have at least one single point of failure, making the project unappealing to him.
Uncertainty Still Surrounds Ethereum’s Classification
The SEC has sued several cryptocurrency companies for failing to register certain cryptocurrencies, including Ethereum, as securities. Ongoing efforts still exist to assign a specific classification to Ethereum and other cryptocurrencies. No final decision has been made at this point, and no one can be sure of how it will end. It is possible that Ethereum will not be classified as a security, and thus the SEC will not be required to regulate it, or vice versa.