0
0
Ethereum Co-founder Alleges Influence Behind US Crypto Crackdown
In recent times, the growing discontent with the U.S. government’s increasing opposition to cryptocurrency has taken a partisan turn, as industry leaders assign blame to specific Democrats such as President Biden, Senator Elizabeth Warren, and Securities and Exchange Commission Chair Gary Gensler. However, Ethereum co-founder Joe Lubin offers a unique perspective on this matter.
Lubin in a recent interview with Decrypt suggested that the root cause of the cryptocurrency crisis in America may extend beyond individual political figures or parties. He proposed the existence of an entity, potentially linked to the banking lobby, orchestrating this resistance against crypto and decentralization.
The Ethereum co-founder highlighted that the principles of cryptocurrency and decentralization pose a threat to the longstanding global dominance maintained by the American state in collaboration with traditional financial systems. In his analysis, an entity representing broader American global interests, rather than purely partisan motives, could be driving the country’s growing hostility towards crypto.
Operation Choke Point 2.0 and Crypto
Lubin’s theory mirrors the concept of “Operation Choke Point 2.0,” a notion popularized by industry figure Nic Carter. This theory suggests a coordinated federal effort or possibly a broader initiative to impede the operations of crypto companies effectively. The name draws parallels with the real “Operation Choke Point,” a Department of Justice endeavor from 2013 to 2017 targeting payday lenders and firearms retailers’ access to banking services.
Is the current scenario in crypto akin to these past regulatory crackdowns? According to Lubin, it might be more significant in scope. He indicated that the U.S. government historically exhibits a preference for top-down control, especially through financial intermediaries, whereas blockchain technology challenges this centralized control.
Lubin implied that there exists a fundamental clash between proponents of decentralization, like himself, and the established American power structure. Hence, the SEC’s recent actions against the crypto industry should not come as a surprise.
Consensys Lawsuit Against the SEC
Last month, Consensys, the Ethereum software company co-founded by Lubin, proactively initiated a lawsuit against the SEC. The legal challenge aimed to dispute the regulator’s stance that trading ETH constitutes an illegal securities offering. Lubin warned that a favorable SEC ruling in this case could jeopardize the future of the Ethereum blockchain in the United States.
Despite some banks embracing innovations like spot Bitcoin ETFs, Lubin cautioned that supporting crypto products for profit does not equate to endorsing genuine decentralization. He argued that financial entities could engage with crypto ETFs for financial gain while simultaneously hindering projects like Consensys from advancing a decentralized future.
While Lubin’s speculation about Wall Street’s influence on the current crypto landscape remains speculative, it sheds light on the complexities of the ongoing regulatory challenges faced by the cryptocurrency ecosystem.
Image/Photo credit: source url
