Lubin Predicts Wall Street's Deep Dive into Ethereum and DeFi Amid Regulatory Shifts

Joseph Lubin, co-founder of Ethereum, anticipates a significant shift in Wall Street's engagement with decentralized finance (DeFi) on the Ethereum network. Lubin’s prediction marks the beginning of a wave of institutional interest in Bitcoin and Ethereum. It more broadly signals a tremendous change in how financial regulators are approaching the crypto space. He wrote about his experience in a recent post on X.com.

Lubin touched upon the increasing demand from institutional investors, for both Bitcoin and Ethereum. The sudden increase in demand, coupled with the recent regulatory push, shows promise for Ethereum’s long waited return. That’s obvious from how its price traded in the first week of June.

Lubin believes financial regulators, like the SEC, have changed their approach towards crypto firms, particularly since the change in US administration. In particular, he called attention to a stark difference between the SEC’s current position and its historical enforcement actions. This shift is especially apparent under Gary Gensler during the Biden administration.

"The best and brightest builders are now entering the ecosystem to build on our tech without fear of politically motivated enforcement actions from the SEC and being debanked." - Joseph Lubin

Lubin argues that whatever Wall Street’s interest turns out to be, it will cause them to dive very deep into DeFi and Ethereum. He thinks financial institutions don’t yet grasp the complexities that separate Bitcoin from Ethereum. This understanding is key to understanding philosophical maneuvers by corporations such as MicroStrategy (MSTR) and SBET.

"They will be motivated to deep dive and learn what’s up with these strategies. They will have to deeply understand the details of Bitcoin and Ethereum and the strategies of MSTR and SBET. They will have do go deep on DeFi on Ethereum" - Joseph Lubin

Lubin’s observations are indicative of a wider trend of greater acceptance and deeper integration of cryptocurrencies into traditional financial services. He thinks this shift is already beginning.