Joe Lubin breaks down the SEC war, Ethereum’s roadmap, and Vitalik Buterin

According to Ethereum founder Joe Lubin, Consensys is willing to spend millions of dollars to fight the Securities and Exchange Commission's (SEC) enforcement campaign against the broader Ethereum ecosystem in the United States.

Speaking exclusively on Cointelegraph's podcast Decentralize, Lubin laid out the finer details of Consensys' decision to take preliminary legal action against the SEC. Listen to the full podcast below.

Ethereum's founder believes that the financial and operational costs of the cryptocurrency ecosystem are difficult to measure due to the SEC's “enforcement regulation” policies.

“We're all in,” Lubin told Cointelegraph. “But we have to think about the costs we've incurred and the costs our entire ecosystem is incurring.”

The CEO of Consensys said the SEC had dropped a “carpet bomb” on the ecosystem as a whole, forcing companies to seek out and produce a “tremendous amount” of documents to please the US securities regulator.

Related: Ethereum ETF Confirmed to Be a ‘Huge Political Issue' – Joseph Lubin

Lubin said small startups facing SEC legal action are struggling to raise funds.

“It's a very effective way to reduce or kill an ecosystem.”

According to Lubin, Consensus was preparing to pay “tens of millions of dollars” in legal fees to take on the SEC to determine “internally and confidentially” whether Ether (ETH) is a security.

“Everybody keeps saying it's a commodity. But he cannot bring himself to call it security. “It's punishing everyone in our ecosystem as if they've already decided internally, secretly, that it's safe,” Lubin added.

Ethereum roadmap and layer-2s

The Ethereum founder discussed Ethereum's sustainability roadmap, the importance of modularization, and a layered approach to expansion. He explained how the technology has expanded, enabling a variety of applications and wider adoption.

“Mature engineering systems are modular for efficiency and effectiveness. Our ecosystem is modular and layered, and that's great. Some of the pain they experience is at this different level of quantification,” Lubin explained.

The CEO of Consensus said that Ethereum has achieved horizontal and vertical scalability, which will eventually allow for more complexity.

The diversity of solutions allows the integration of the Ethereum infrastructure, enabling the abstraction of the software development kit chain and a “single consistent view of the ecosystem”.

According to Lubin, the ultimate goal is an “intense-based architecture” where multiple parts of the Ethereum network can handle the necessary connections and transactions to meet the specific needs of the user.

“You're talking to your wallet, I want some Solana tokens, or I want to play a game. It just goes ahead, does all the necessary bridging and swapping, and injects the necessary number of tokens into your MetaMask,” Lubin explained.

This phenomenon requires artificial intelligence (AI) tools and solution networks and “highly adaptable, highly heterogeneous machinery underneath.” Lubin compared it to today's Internet, which runs on many different types of databases for different purposes.

“Be it Google Docs, Google Sheets or Excel, SQL databases and non-NoSQL databases, vector databases, graph databases. The databases we use every day.

Lubin's views on Solana, Bitcoin and Vitalik Buterin

The founder of Ethereum also commented on staking, return on investment for validators and natural risks. Lubin explains how stakeholders perceive stake and its importance in the Ethereum ecosystem.

EigenLayer was another point of discussion, with Lubin explaining how innovations like restacking and elastic security resources are changing startups' operations in the blockchain space.

The CEO of Consensys discusses the Solana (SOL) ecosystem and how Bitcoin (BTC) has shaped its journey into the world of cryptocurrencies and blockchain.

Finally, Vitalik Buterin describes his ongoing impact on the Ethereum ecosystem and its broader vision. Joe highlights Vitalik's role in transitioning Ethereum and its involvement in global technology adoption.

Listen to the entire episode hosted by Cointelegraph on Cointelegraph's podcast page, Spotify, Apple Podcasts, or your podcast platform of choice. And don't forget to check out Cointelegraph's full lineup of other shows!

Disclaimer: This article is not intended for general informational purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.

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