Economist Nouriel Roubini supported SEC Chair’ ambiguous position on classifying Ethereum as security

By Selena On Mar 30, 2023

Nouriel Roubini, a prominent critic, has slammed Ethereum (ETH) whales, echoing Securities and Exchange Commission (SEC) Chair Gary Gensler’s equivocal stance on Ethereum’s potential classification as a security.

In a tweet, Roubini stated that despite the self-serving statements made by ETH billionaires, Ethereum is security, calling their views “totally laughable.”

ETH is a security in spite of all the self-serving b/s that ETH whales have been spewing for a decade! A bunch of ETH billionaires claim that isn’t a security. Totally laughable!

SEC’s Gensler Reiterates ‘Proof-of-Stake’ Crypto Tokens May Be Securities https://t.co/025ZzV24xH

— Nouriel Roubini (@Nouriel) March 30, 2023

In a recent interview with New York Magazine, Gensler, who navigates the uncharted waters of cryptocurrencies, indicated that Ethereum may be classified as a security.

According to Gensler, cryptocurrencies other than Bitcoin are frequently formed by a group of entrepreneurs seeking to profit from the efforts of intermediaries. If a cryptocurrency is classified as a security, it will be subject to additional regulatory scrutiny and compliance obligations.

In a recent SEC meeting, Gensler suggested that proof-of-stake (PoS) coins such as Ethereum should be regulated as securities, contradicting the stance of Commodities Futures Trading Commission (CFTC) Chairman Rostin Behnam. As indicated by its recent legal fight with Binance, the CFTC regards Ethereum as a commodity.

Roubini’s support for Gensler’s position on Ethereum’s classification as security highlights the continuous tug of the battle over the cryptocurrency’s status. The industry’s future is in jeopardy as it deals with regulatory uncertainty.

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