Jack Dorsey, a prominent Bitcoin advocate, has ignited a heated debate within the crypto community by asserting that Ether (ETH) is a security. This statement has led to a flurry of reactions and discussions on social media, particularly on Twitter.
Key Takeaways
- Jack Dorsey claims ETH is a security, sparking controversy.
- Udi Wertheimer and Gabor Gurbacs respond with differing views.
- The debate follows SEC lawsuits against Binance and Coinbase.
Dorsey’s Controversial Claim
Jack Dorsey, known for his strong support of Bitcoin (BTC), recently found himself at the center of a Twitter storm. When asked if he believed Ether (ETH) was a security, Dorsey responded with a simple “yes.” This comment quickly caught the attention of various crypto industry figures.
Reactions from the Crypto Community
Udi Wertheimer, a Bitcoin Ordinals developer at Taproot Wizards, was among the first to react. He implied that Dorsey was a “clown” for his statement. In response, Dorsey challenged Wertheimer by tweeting, “ETH is not a security? Teach me wizard.” Wertheimer then shared a five-year-old video of Gary Gensler, the Chair of the United States Securities Exchange Commission (SEC), stating that ETH was “sufficiently decentralized” and not a security.
Gabor Gurbacs, a strategy adviser to stablecoin issuer Tether and investment management firm VanEck, also weighed in. He suggested that Ethereum’s recent transition to proof-of-stake might have re-triggered securities laws, adding another layer to the ongoing debate.
Context of the Debate
The controversy comes on the heels of the SEC filing lawsuits against major cryptocurrency exchanges Binance and Coinbase. The lawsuits, filed on June 5 and 6, allege that these exchanges offered tokens considered to be unregistered securities. This legal backdrop has intensified the scrutiny on various cryptocurrencies, including ETH.
Dorsey’s Pro-Bitcoin Stance
Dorsey has been vocal about his preference for Bitcoin over other cryptocurrencies. He recently tweeted a screenshot of a 2015 post by Coinbase CEO Brian Armstrong, where Armstrong referred to altcoins as a “distraction” and emphasized focusing on Bitcoin. Dorsey also retweeted a video of Jack Mallers, CEO of Bitcoin Lightning application Strike, criticizing Armstrong for prioritizing altcoins over Bitcoin and the Lightning Network.
Historical Context
Dorsey’s skepticism towards Ethereum is not new. In 2021, while he was still in charge of Twitter, the company sold 140 Ethereum-based nonfungible tokens (NFTs), but Dorsey himself chose not to invest in Ether. He has also downplayed Ethereum’s potential, claiming it wouldn’t be able to disrupt big tech on its own.
Future Implications
Dorsey’s recent activities include funding and advocating for Nostr, a decentralized network that integrates Bitcoin Lightning-based payments on the “Damus” platform. This move aligns with his long-standing support for Bitcoin and decentralized technologies.
The debate over whether ETH is a security is far from over, and Dorsey’s comments have only added fuel to the fire. As the crypto community continues to grapple with regulatory challenges, the opinions of influential figures like Dorsey will undoubtedly play a significant role in shaping the discourse.
Sources
- Jack Dorsey courts controversy by claiming ETH is a security, Cointelegraph.
