According to ChainCatcher, Ethereum co-founder and ConsenSys founder and CEO Joseph Lubin stated in the article that the U.S. Securities and Exchange Commission (SEC) is reclassifying Ethereum from a commodity to a security without legal authorization so that it can enforce registration and other requirements related to securities within its jurisdiction.

However, Ethereum is clearly not a security. The SEC and CFTC have affirmed this on multiple occasions, and ConsenSys’ entire business model is built on this clear regulatory consensus.

Lubin also pointed out that the SEC's regulatory escalation violates the basic principle of separation of powers, according to which it is the job of Congress to legislate and assign jurisdiction over blockchains such as Ethereum. If the SEC wins, it will mean the end of the Ethereum blockchain in the United States because it makes Ethereum functionally inaccessible and unusable.