The Looming Ethereum Supply Crunch: Is A Massive Surge On The Horizon?

Ethereum co-founder Joe Lubin recently expressed his views on the SEC’s sudden urgency regarding spot Ethereum ETFs. Lubin believes that approving these ETFs would trigger a massive surge in demand for Ethereum, potentially leading to a shortage of the altcoin. He anticipates substantial inherent and latent buying pressure for Ether, marking a pivotal moment for Ethereum and the broader crypto industry.

Lubin highlighted the significant natural demand for purchasing Ether, noting that a considerable portion is actively utilized in the core protocol, decentralized finance (DeFi) systems, and decentralized autonomous organizations (DAOs). He described this development as a potentially transformative milestone for Ethereum and the entire crypto sector.

In addition, Lubin’s blockchain software company has initiated a lawsuit against the U.S. Securities and Exchange Commission (SEC) and its five commissioners. The lawsuit aims to block the SEC from designating Ethereum’s native token, Ether, as a security, which would subject it to regulatory control.

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Moreover, On April 10th, the SEC issued a Wells notice to the company, alleging that its MetaMask cryptocurrency wallet was functioning as an unregistered broker. However, This implies that the SEC views Ether transactions as securities requiring regulatory oversight.

ConsenSys is pursuing a declaratory judgment to assert that Ether is not a security, aiming to shield itself from potential SEC investigations based on this classification.

However, Lubin has accused Wall Street and the SEC of conspiring to suppress the crypto sector through their enforcement-centric tactics, labeling it a unique strategy of regulation by enforcement.

The legal battle involving ConsenSys has attracted significant support. Coinbase’s chief legal officer publicly backs Ether’s classification as a commodity rather than a security. However, this move signifies a commendable challenge to what he perceives as the SEC’s overreach into the blockchain realm.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.