ether ETH/USD co-founder Joseph Lubin praised SEC Chairman Gary Gensleralthough the latter had featured all cryptocurrencies except Bitcoin BTC/USD as “securities”.

What happened: Closing ETHDenver on March 5, Lubin spoke candidly about recent regulatory enforcement actions and their impact on the evolution of decentralization.

Lubin praised Gensler, who formerly ran the CFTC, and said he believed the latter and the SEC would take the lead in decentralizing “our vast ecosystem.”

He even went so far as to say that Gensler is a “shining knight of decentralization”.

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In a video posted Tuesday by Digital Asset Investor’s YouTube channel, Lubin supported Gensler for stopping Kraken’s staking product and calling it “securities.”

Kraken settled with the SEC on Feb. 9, paying a $30 million penalty in response to allegations that it operated an unregistered securities offering through its staking program.

Lubin said the exchange’s staking product is centralized and therefore a security offering. He added that despite the decentralization claims, the returns paid to stakers made it clear that Kraken was taking significant proactive steps, suggesting that it is actually not as decentralized as initially claimed.

“If you advertise that you’re a very decentralized thing so that it sounds like people are making money because of your efforts, that language can make it a security,” Lubin added.

Price promotion: At the time of writing, ETH is trading at $1,713, up 3.38% over the past 24 hours, according to Benzinga Pro.

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photo by Third Way Think Tank on Flickr