Dorsey Claims Ethereum is a Security
Long-time Bitcoin advocate Jack Dorsey has recently found himself in the midst of a controversy. The Twitter co-founder has ignited a fiery debate among crypto industry leaders and enthusiasts alike after responding affirmatively to a tweet asking if Ethereum (ETH) was a security.
The comment quickly caught the attention of Bitcoin Ordinals developer Udi Wertheimer, who disparagingly referred to Dorsey as a “clown” in a retaliatory tweet on June 6.
Dorsey and Wertheimer Spar Online
Dorsey shot back at Wertheimer, tweeting, “ETH is not a security? Teach me wizard.” This prompted Wertheimer to share a five-year-old video clip of the SEC chair Gary Gensler, where he stated that ETH was “sufficiently decentralized” and wasn’t a security.
The debate didn’t stop there. Gabor Gurbacs, a strategic advisor to Tether and VanEck, entered the conversation. He suggested that Ethereum’s recent transition to proof-of-stake might have triggered securities laws anew.
The Backdrop of SEC Lawsuits
The online debate comes hot on the heels of the SEC launching lawsuits against cryptocurrency exchanges Binance and Coinbase for allegedly offering tokens considered as unregistered securities.
Dorsey also tweeted his approval of a 2015 post by Coinbase CEO Brian Armstrong, where Armstrong had suggested that altcoins were a “distraction” and that Coinbase should instead focus on Bitcoin.
Dorsey’s Bitcoin Advocacy Continues
Dorsey’s pro-Bitcoin stance was further underlined when he retweeted a video of Jack Mallers, the CEO of Bitcoin Lightning application Strike. In the video, Mallers criticized Armstrong for prioritizing altcoins over building on Bitcoin and the Lightning Network.
Dorsey’s Past Stance on Ethereum
Interestingly, in 2021 when Dorsey was still leading Twitter, the company sold 140 Ethereum-based non-fungible tokens (NFTs), but he personally refrained from investing in Ether. Dorsey had also questioned Ethereum’s development back in August 2021, claiming that Ethereum alone couldn’t disrupt big tech.
Most recently, Dorsey provided funding and publicly advocated for Nostr, a decentralized network that aims to disrupt Twitter by integrating Bitcoin Lightning-based payments on the Damus platform.