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Jack Dorsey courts controversy by claiming ETH is a security

Jack Dorsey courts controversy by claiming ETH is a security

Jack Dorsey, a long-time Bitcoin (BTC) advocate, has sparked a Twitter war with various crypto industry experts after responding affirmatively to a question about whether or not Ether (ETH) was considered to be a security.

On June 6th, Udi Wertheimer, a Bitcoin Ordinals developer at Taproot Wizards, called Dorsey a “clown” in a tweet, in response to Dorsey’s comment. Dorsey replied, “ETH is not a security? Teach me wizard,” prompting Wertheimer to share a five-year-old video of the United States Securities Exchange Commission Chair Gary Gensler stating that ETH was now “sufficiently decentralized” and was not a security.

Gabor Gurbacs, strategy adviser to stablecoin issuer Tether and investment management firm VanEck, also weighed in on Wertheimer’s comment, stating that Ethereum’s recent transition to proof-of-stake may have re-triggered securities laws.

The exchange of words happened after the SEC filed lawsuits against cryptocurrency exchanges Binance and Coinbase on June 5th and 6th for allegedly offering tokens considered to be unregistered securities.

Dorsey also tweeted and appeared to approve of a screenshot of a post from Coinbase CEO Brian Armstrong in 2015, where he referred to altcoins as a “distraction” and said that Coinbase should instead “be focused” on Bitcoin.

Continuing his pro-Bitcoin tweeting frenzy, Dorsey retweeted a video of Jack Mallers, CEO of Bitcoin Lightning application Strike, calling out Armstrong for prioritizing altcoins over building on Bitcoin and the Lightning Network.

When Dorsey was CEO of Twitter in 2021, the company sold 140 Ethereum-based nonfungible tokens (NFTs), but he rejected investing in Ether at the time. He also downplayed Ethereum’s potential in August 2021, claiming that Ethereum alone would not be able to disrupt big tech.

Recently, Dorsey provided funding and became an advocate for Nostr, a decentralized “Twitter killer” network that integrates Bitcoin Lightning-based payments on the “Damus” platform.

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

Magazine: Crypto regulation – Does SEC Chair Gary Gensler have the final say?