In Steven Neyaroff’s analysis, Ether qualifies as a security, drawing from SEC Chair Gary Gensler’s classification and Ethereum co-founder Joseph Lubin’s actions. Neyaroff pointed out Lubin’s statement that buying a crypto token in large quantities or speculating on it classifies it as a security, aligning it with Gensler’s confirmation of Lubin as a venture capitalist buying Ether for speculation.
Neyaroff emphasized the inconsistency in the SEC’s crypto regulation approach, metaphorically asserting that Ether should be deemed a security based on Lubin and Gensler’s recent comments. He referred to a video where Lubin described Ether as a consumer token, emphasizing its use in decentralized processes and shared resource offerings to the world.
Lubin acknowledged regulatory challenges, stating his team focuses on securities laws and differentiates between investor tokens and consumer utility tokens like Ether. He highlighted their effort to provide clear definitions and educate regulators worldwide on network business models benefiting from membership tokens or tokens representing the consumption of scarce resources.
Lubin concluded that crypto tokens sold to users, not in large quantities to speculators, could be classified as consumer tokens, emphasizing their commitment to responsible token distribution.