According to Joseph Lubin, co-founder of Ethereum, the second largest cryptocurrency by market capitalization is not a security, but a highly liquid commodity.
He has stated:
"I don’t think there’s any point to speculate on something that is extremely unlikely [that Ethereum will be recognized as a security]. People buy barrels of oil with the expectation of profit."
He has added that "anyone can say anything, that doesn't make it true."
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The US Securities and Exchange Commission (SEC) Chairman Gary Gensler suggested earlier this month that proof-of-stake (PoS) consensus tokens could be considered securities under US law.
In September last year, Ethereum switched to PoS as part of the activation of The Merge update. After that, Gensler said PoS-based cryptocurrencies could be considered securities.
In February 2023, Lubin ruled out such a possibility, as, according to him, this would cause a huge outcry from the cryptocurrency community, various politicians and certain regulatory bodies.