Former Twitter CEO Declares Ethereum a Security, Urges Coinbase to Focus on Bitcoin Amid SEC Lawsuit

In a bold statement that has sparked intense debate, former Twitter CEO Jack Dorsey has publicly voiced his opinion on Ethereum (ETH) and its classification as a security. Notably, Dorsey also expressed support for Coinbase, the US-based crypto exchange currently facing a lawsuit by the Securities and Exchange Commission (SEC), and suggested a Bitcoin-focused strategy for the company.

Dorsey’s Controversial Opinion: Ethereum as a Security

Known for his Bitcoin (BTC) maximalist views, Dorsey argued that Ethereum should be categorized as a security, shedding light on the ongoing legal battle between Coinbase and the SEC. His remarks triggered a flurry of discussions among industry experts, investors, and cryptocurrency enthusiasts.

Dorsey’s stance gained traction when he pointed out a 2015 tweet from Coinbase CEO Brian Armstrong. In the tweet, Armstrong emphasized the significance of Bitcoin and sidechains, dismissing Ripple, Stellar, and altcoins as mere distractions. Dorsey not only agreed wholeheartedly with this sentiment but also suggested that Coinbase should refocus its efforts exclusively on Bitcoin.

SEC Lawsuit Rattles Coinbase

Meanwhile, Coinbase finds itself in the midst of a legal storm as the SEC filed a lawsuit accusing the exchange of operating without proper registration as a national securities exchange, broker, and clearing agency. The SEC also cited Coinbase’s failure to register its crypto asset staking-as-a-service program. The timing of the lawsuit, following the SEC’s recent action against Coinbase’s rival, Binance, has raised suspicions and concerns within the crypto community.

Industry Leaders React to SEC’s Moves

The sequential regulatory actions against Coinbase and Binance have sent shockwaves through the industry, prompting leaders to question the implications for the future of cryptocurrencies. 

Whereas, Charles Hoskinson, the visionary founder of the Cardano network, has also voiced his concerns, seeing the SEC’s moves as a potential threat to financial freedom. 

Hoskinson fears that these actions could pave the way for government-controlled central bank digital currencies (CBDCs) to replace mainstream cryptocurrencies.

As the legal battle between Coinbase and the SEC unfolds, the crypto community remains on high alert. The outcome of this case will have significant ramifications for the industry. Discussions surrounding regulations, security classifications, and the preservation of financial freedom are crucial in shaping the future of cryptocurrencies.