Jack Dorsey stirs up controversy by asserting that ETH is security

By: Mark Jessy

Jack Dorsey stirs up controversy by asserting that ETH is security

June 7, 2023 7:21 AM

Following the lawsuits against Binance and Coinbase for marketing unregistered securities, Jack has promoted a renewed emphasis on Bitcoin's growth through his tweets.

Long-time Bitcoin(BTC) supporter Jack Dorsey is embroiled in a Twitter feud with many crypto industry pundits after responding "yes" to a query about whether Ether(ETH) was a security.

On June 6, Udi Wertheimer, a software engineer at Taproot Wizards who works on the Bitcoin Ordinals project, tweeted that Dorsey was a "clown" because of the remark.

Dorsey responded by tweeting, "ETH is not a security? Teach me, wizard," led Wertheimer to post→ a five-year-old video of US Securities and Exchange Commission (SEC) chief Gary Gensler declaring that ETH was now "sufficiently decentralized" and hence not security.

However, Gabor Gurbacs, strategy advisor to Tether and investment management firm VanEck, weighed in on Wertheimer's remark, claiming that Ethereum's recent switch to proof-of-stake may have re-triggered securities rules.

The online dispute comes after the SEC filed lawsuits on June 5 and 6 against cryptocurrency exchanges Binance and Coinbase for purportedly providing tokens that are unregistered securities.

Dorsey also tweeted and indicated support of a screenshot of a 2015 post by Coinbase CEO Brian Armstrong, in which he called altcoins a "distraction" and that Coinbase should "be focused" on Bitcoin.

Dorsey maintained his pro-Bitcoin Twitter streak by retweeting a video→ of Jack Mallers, CEO of Bitcoin Lightning application Strike, criticizing Armstrong for prioritizing altcoins above Bitcoin and the Lightning Network.

When Dorsey was CEO of Twitter in 2021, the firm issued 140 Ethereum-based nonfungible tokens (NFTs), but he refused to invest in Ether at the moment.

In August 2021, Dorsey similarly dismissed Ethereum's development, claiming that Ethereum alone would not be able to disrupt large tech.

Dorsey recently invested in and endorsed Nostr, a decentralized "Twitter killer" network that incorporates Bitcoin Lightning-based payment on the "Damus" platform.