According to ChainCatcher, Ethereum co-founder and ConsenSys founder and CEO Joseph Lubin published an article titled "Ethereum and Blockchain Technology Are Threatened by Washington Regulators" stating that without legal authorization, the U.S. Securities and Exchange Commission (SEC) is arbitrarily reclassifying Ethereum from a commodity to a security in order to be able to enforce registration and other requirements related to securities (such as bonds, stocks and other investments) within its jurisdiction.

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

The SEC’s regulatory escalation violates the fundamental principle of separation of powers, according to which it is Congress’s job to legislate and assign jurisdiction over blockchains like Ethereum.

More broadly, if the SEC wins, it would spell the end of the Ethereum blockchain in the United States, as it would render Ethereum functionally inaccessible and unusable.