Jack Dorsey courts controversy by claiming ETH is a security

Lengthy-time Bitcoin (BTC) advocate Jack Dorsey has discovered himself in a Twitter conflict with a number of crypto trade pundits after he responded with “sure” to a query asking if Ether (ETH) was a safety.

The remark caught the eye of Udi Wertheimer, a Bitcoin Ordinals developer at Taproot Wizards, who inferred Dorsey was a “clown” in a tweet on June 6.

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In response, Dorsey tweeted “ETH shouldn’t be a safety? Educate me wizard,” which prompted Wertheimer to share a five-year-old video of the USA Securities Trade Fee (SEC) chair Gary Gensler stating that ETH was now “sufficiently decentralized” and wasn’t a safety.

Nevertheless, Gabor Gurbacs, technique advisor to stablecoin issuer Tether and funding administration agency VanEck weighed in on Wertheimer’s remark, stating that Ethereum’s latest transition to proof-of-stake might have re-triggered securities legal guidelines.

The net scuffle is available in mild of the SEC submitting lawsuits in opposition to cryptocurrency exchanges Binance and Coinbase on June 5 and 6 for allegedly providing tokens thought-about to be unregistered securities.

Dorsey additionally tweeted and implied approval of a screenshot of a submit by Coinbase CEO Brian Armstrong in 2015, the place he referred to altcoins as a “distraction” and that Coinbase ought to as a substitute “be targeted” on Bitcoin.

Dorsey continued on his pro-Bitcoin tweeting streak and retweeted a video of Jack Mallers — CEO of Bitcoin Lightning software Strike — who referred to as out Armstrong for selecting to prioritize altcoins over constructing on Bitcoin and the Lightning Community.

Associated: Jack Dorsey tips pro-crypto candidate Robert Kennedy to win presidency

When Dorsey was accountable for Twitter in 2021 the company sold 140 Ethereum-based nonfungible tokens (NFTs) however he rejected investing in Ether on the time.

Dorsey additionally downplayed Ethereum’s improvement in August 2021 when he claimed that Ethereum alone wouldn’t be able to disrupt big tech.

Dorsey lately supplied funding and have become an advocate for Nostr, a decentralized “Twitter killer” community that integrates Bitcoin Lightning-based funds on the “Damus” platform.

Journal: Crypto regulation — Does SEC Chair Gary Gensler have the final say?