ConsenSys CEO Joe Lubin: Ethereum Poised to Thrive Under Trump’s Presidency

Following Donald Trump’s election victory, Joe Lubin, CEO of ConsenSys, expressed optimism about the future of Ethereum, predicting that the network stands to benefit more than any other protocol from the new administration. Lubin’s comments, made at Devcon 2024 in Thailand, highlight his belief that Ethereum could see significant gains as regulatory tensions with the U.S. Securities and Exchange Commission (SEC) ease under the incoming president.

Lubin was candid about his frustrations with the SEC, describing the agency’s treatment of Ethereum as a form of “gas-lighting,” which he believes has been a long-standing issue. He pointed to what he views as politically motivated actions against Ethereum, influenced by the progressive wing of the Democratic Party.

“We’ve been living in a gas-lit world for a long time, generously gas-lit by the SEC,” Lubin remarked, adding that the SEC’s actions have been particularly detrimental to Ethereum.

This friction with the SEC culminated in a difficult period for ConsenSys, with the company cutting 20% of its workforce in October, citing the “abuse of power” by the regulatory body.

Ethereum’s Recovery and Growth Post-Election

Lubin sees Trump’s victory as a potential turning point for Ethereum. He believes that with a change in SEC leadership, the pressure on Ethereum will begin to ease, allowing the network to grow without the same level of regulatory scrutiny.

“America has had its boot on the neck of Ethereum for a pretty long time…and that’s caused a bunch of FUD [fear, uncertainty, and doubt],” Lubin stated.

Since Trump’s win on November 5, Ethereum (ETH) has seen impressive gains. Over the past week, the cryptocurrency has surged 23%, trading around $3,200 according to CoinMarketCap. This rebound is notable when compared to other major cryptocurrencies, with Bitcoin (BTC) up 16%, and Solana (SOL) and BNB increasing by 8% and 3%, respectively.

Lubin attributes Ethereum’s strong performance to its maturity and size compared to other blockchain ecosystems. He emphasized that Ethereum is “bigger and more mature than all the other ecosystems, other than Bitcoin, which is mature but narrow in its purview.”

Lubin’s optimism for Ethereum’s future is further supported by recent data from Farside, which reveals that US spot Ethereum ETFs have seen a surge in investment since Trump’s election. On November 11, Ethereum ETFs hit a record $295 million in inflows. This marks a significant increase in investment, reflecting growing confidence in Ethereum’s potential under a more favorable regulatory environment. While Bitcoin ETFs have also seen strong performance, Ethereum’s rebound appears to be more robust in comparison.

Lubin’s Hopes for a Smooth SEC Transition

As Trump prepares to assume office again on January 20, 2025, Lubin is hopeful that the SEC will undergo a smooth transition. He expects SEC Chair Gary Gensler to step down on inauguration day, with Mark Uyeda, a current SEC commissioner, potentially stepping into the role of acting chair.

Lubin expressed a desire for the SEC to approach the transition gracefully, without causing further disruption to the cryptocurrency industry.

“Hopefully, they won’t try to jam up a lot of people and companies before they exit. Hopefully, they’ll be graceful in their exit or the transition,” Lubin said.

Before the election, ConsenSys issued an open letter to the next U.S. president, calling for clear and supportive regulations for the crypto and Web3 sectors. The letter, published on October 23, argued that regulatory uncertainty was a major barrier to the development of blockchain technology, and that a more transparent and supportive regulatory environment would foster innovation.

With Trump’s victory, Joe Lubin believes Ethereum is positioned to thrive, particularly in light of the potential change in SEC leadership. As regulatory pressures ease, Ethereum’s growth could accelerate, further cementing its place as the dominant smart contract platform in the blockchain ecosystem.

As the crypto space looks ahead to 2025, industry players and investors alike will be closely watching the unfolding regulatory landscape, hopeful that clearer, more supportive policies will pave the way for continued innovation in Web3 and decentralized finance (DeFi).