US Securities And Exchange Commission Indicates Jurisdiction Over Ethereum

Abdul Ghani

In a lawsuit against a crypto influencer, the SEC says that Ethereum transactions take place in the USA. The US Securities and Exchange Commission (SEC) has indicated its jurisdiction over Ethereum transactions. In a lawsuit against crypto influencer Ian Balina, the agency said it could lawfully sue Balina because the transactions "had taken place in the United States. "

https://img.particlenews.com/image.php?url=2aM53x_0i35S7FL00
Who oversees Ethereum? The SEC would obviously like it.Image by Pixabay Creative Commons.

Allegations against Balina include offering Sparkster tokens without registering as part of an investment pool. The SEC not only justifies its responsibility with the fact that the transactions would have affected people in the USA, as Decrypt writes, among other things.

In addition, the regulator also argues that the transactions were validated via Ethereum nodes and that these have the highest concentration in the USA. Therefore, the SEC is responsible. 45.85 percent of all Ethereum nodes work from the USA, and 19 percent from Germany.

A possible step toward the regulation

Legal experts see little significance in the SEC's opinion in relation to the specific case against Balina, since jurisdiction is probably not in question. The statement is interesting, however, with regard to the regulation of crypto transactions that have been hinted at again and again.

Should the SEC justify its jurisdiction with the argument that the United States has the highest concentration of Ethereum nodes, the authority could seek fundamental regulation of all ETH transactions. ETH transactions could eventually get a status comparable to stock exchange transactions, falling under the regulation of the SEC.

SEC boss Gary Gensler had already indicated after the successful Ethereum merger that the switch to the proof-of-stake process would bring the currency closer to the definition of security. The wording in the indictment against Balina points in a similar direction of definition.

Comments / 0

Published by

Member Of Freelancers Union (USA), Freelance Writer!, and Digital Creator. Ghani Mengal is an enthusiast Freelance blogger and digital marketer. His content has been published and featured on many popular blogs, websites, and publications. Including TeelFeed, LifeHack.org, Data-Driven Investor, TextSniper, Scientific Publication The Predict, The Startup, The Ascent, Heart Affairs, Illumination, And The List goes on.

N/A
3895 followers

More from Abdul Ghani

Comments / 0