Nouriel Roubini, widely known as Dr. Doom in the cryptoverse, recently took a stance on the major debate surrounding the classification of Ethereum (ETH) as a security. His opinion comes after SEC Chairman Gary Gensler provided a similar suggestion that Ethereum may be considered a security in a recent interview with New York Magazine.

The potential classification of Ethereum as a security could have legally binding requirements attached to it. This would include compliance with numerous regulations and intensified scrutiny. Despite this proposed shift, Chairman of the CFTC, Rostin Beham, sees Ethereum as a commodity. The latest legal tussle between the CFTC and Binance confirms this stance. Dr. Doom took to Twitter to share his thoughts on the ETH classification debate and addressed the self-serving opinion rendered by ETH billionaires as 'totally laughable.'

SEC Chairman Gary Gensler gave several arguments as to why Ethereum should be classified as a security. According to Gensler, cryptocurrencies oftentimes materialize from the efforts of group of entrepreneurs or developers who seek profit for their initiative. Therefore, it can be said that PoS tokens such as Ethereum could share many of the same security attributes as their PoW counterparts.

As enterprise blockchain tools and distributed ledgers become increasingly popular amongst financial platforms, regulators have yet to establish definitive action plans in order to properly monitor this industry. As the market remains in a perpetual state of ambiguity and chaos, the future of the sector is that much more uncertain. There is a need to specify regulations in order to protect cryptocurrency users and prevent illicit activity. The dialogue emanating from the SEC, CFTC and Nouriel Roubini paints a vivid image of the unregulated crypto sector, and it is clear that until major reformations take place, the crypto industry remain in a vulnerable state.



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