Attorney Neyaroff Dissects Discord in SEC’s Crypto Classification

Steven Neyaroff, an attorney and blockchain pioneer, asserts that Ether meets the criteria for classification as a security, citing the assessment made by Gary Gensler, chairman of the SEC, and the conduct of Joseph Lubin, co-founder of Ethereum.

By applying logical analysis to statements made by Lubin and Gensler at distinct events, Neyaroff arrived at an intriguing deduction.

Lubin, according to Neyaroff, stated that large-scale purchases or speculation on a specific cryptocurrency token qualify those tokens as securities.

Additionally, the blockchain expert took note of Gensler’s remarks, in which he confirmed Lubin’s status as a venture capitalist (VC) who speculated by purchasing significant quantities of Ether.

The attorney’s intention in his post was to draw attention to the inconsistency in the SEC’s approach to crypto regulation and to highlight the discord between the positions of both parties.

Neyaroff verified metaphorically that Ether ought to be categorized as security in light of the recent remarks of Lubin and Gensler.

In a video referenced in Neyaroff’s post, Lubin characterized Ether as a consumer token. The co-founder of Ethereum explained in the video that Ether is utilized to fund a variety of decentralized processes.

Therefore, it is a token that signifies a method of providing globally accessible shared resources.

Lubin elaborated on the difficulties posed by regulators, stating that his team’s primary concern is securities law and that they can issue consumer utility tokens such as Ether and investor tokens or tokenized securities that are not considered securities.

He stated that their objective is to assist regulators worldwide in comprehending that specific network business models profit from membership tokens or tokens that represent the depletion of finite resources and to obtain precise definitions.

As long as companies sell cryptocurrency tokens to end-users and do not sell in bulk to speculators seeking to profit from the actions of others, the tokens can be classified as consumer tokens, according to Lubin.