The ConsenSys CEO believes the week's groundbreaking events demonstrate that political considerations are now shaping crypto regulation, a positive development for the industry.

This week has been historic for the cryptocurrency sector, marked by significant advancements. In Washington, D.C., bipartisan support emerged for a crypto regulation bill on Wednesday. This was followed by the U.S. Securities and Exchange Commission (SEC) granting eleventh-hour approval for spot Ethereum ETFs the next day.

To Ethereum co-founder and ConsenSys CEO Joe Lubin, these developments—especially the SEC's reversal on Ethereum—signify a profound change in how cryptocurrencies are perceived and will be managed in the U.S.

“I think this is a game changer,” Lubin told Decrypt in an exclusive interview.

ConsenSys, the $7 billion Ethereum software company founded by Lubin, is currently entangled in multiple legal battles with the SEC regarding the legal status of cryptocurrencies. Despite these challenges, Lubin believes this week's events indicate that crypto has attained a higher status within the American political landscape, potentially altering the dynamics of these legal confrontations.

“My guess is that this is now an extremely important political issue,” he said. “And that overrides.”

“If you want to get elected, you’re probably going to either need to have the blockchain decentralized protocol ecosystem on your side,” Lubin continued. “Or at least you don’t want them to hate you.”

On the SEC’s ruling:

“While ConsenSys welcomes today’s decision to approve ETH Spot ETFs as a step in the right direction, this seemingly last-minute approval is yet another example of the SEC’s troublesome ad hoc approach to digital assets. No other industry, market, or…” stated ConsenSys in a tweet.

Lubin interprets the SEC's decision to approve spot ETH ETFs as a politically motivated, last-minute decision, possibly influenced by a directive from the White House.

According to multiple crypto lobbyists in Washington, this political pressure likely arose from recent election-related developments. Despite this, the SEC's leadership likely maintains its critical stance on crypto, as indicated by its ongoing silence. However, political pressures may now complicate its aggressive legal actions against prominent American crypto firms like ConsenSys.

Lubin remains cautious despite these positive developments.

“We have to stay vigilant,” he said. “We can't assume that we’re not going to be attacked again.”

These events highlight a potential turning point for the crypto industry, suggesting that political dynamics may now play a crucial role in its regulation and future growth.