ETH Status: Jack Dorsey sparks controversy

In a recent series of tweets, long-time Bitcoin (BTC) advocate and Twitter founder Jack Dorsey ignited a heated controversy. According to him, Ethereum (ETH) is a security. This statement quickly prompted passionate reactions from crypto experts, exposing the ongoing debates surrounding the classification of ETH and existing regulations.

Debates over the security of ETH

The debate began when Jack Dorsey responded with a resounding “YES” to a question on Twitter. This assertion was immediately met with strong criticism from Udi Wertheimer, a Bitcoin developer at Taproot Wizards. Wertheimer went as far as calling Dorsey a “clown” in a tweet.

In response, Dorsey tweeted, “ETH is not a security? Teach me wizard.” This exchange then led Wertheimer to share a five-year-old video of Gary Gensler, the SEC chairman. In the video, Gensler stated, “ETH is now sufficiently decentralized. It is no longer considered a security.”

Gabor Gurbacs also joined the discussion. As a strategy advisor for stablecoin issuer Tether and investment management firm VanEck, he supported Wertheimer’s comments. Gurbacs believes that Ethereum’s recent transition to Proof of Stake (PoS) could reignite securities laws concerns.

Implications for the crypto industry

These online debates come amidst the SEC‘s various legal actions. The U.S. regulator has accused Binance and Coinbase of offering tokens that are considered unregistered securities.

The SEC filed its complaints on June 5th and 6th, further fueling concerns about the regulation of digital assets and the classification of crypto.

In one of his tweets, Jack Dorsey seems to endorse a screenshot of a 2015 post by Coinbase CEO Brian Armstrong. In the post, Armstrong refers to altcoins as a “distraction.” According to him, Coinbase should instead focus on Bitcoin.

Jack Dorsey’s statements about Ethereum (ETH) have sparked controversy within the crypto industry. As regulators intensify their efforts to enforce securities regulations, debates about the nature of cryptocurrencies and their compliance with existing laws will continue to rage on.