Several rumors peddled after the mutation of Ethereum to PoS suggest that the crypto would now be classified as a security. As a result, all transactions on Ethereum now require the approval of the US government.
Ethereum is one of the most controversial assets in recent days not only because of the great change called “the merge”, but also because of its second place in the ranking of the best cryptocurrencies.
The SEC considers Ethereum a security
In a lawsuit against influencer Ian Balina, the SEC declared US government jurisdiction over ETH transactions. It is based on the fact that the majority of the nodes are managed in the country. Last I heard, Balina allegedly distributed unregistered Ethereum cryptocurrencies in 2018, violating government ownership of the tokens.
Even if the latter has denied and declares to have done everything legally, the community of users has taken up the case and agrees with the SEC in its approach. During this lawsuit, the SEC declared that it had the right to sue Mr. Balina because of his right to know about Ethereum affairs.
Many of the investors who took part in the investment pool initiated by Balina are said to be based in the United States. The network of blockchain nodes that verified contributors’ ETH indicated a higher concentration in the United States. In reality, more than 42.56% of these nodes, or 3340 out of 7819 reside in the United States, which gives reason to the complaints of the SEC. The rest of the nodes are spread across several other countries.
What impact does the SEC statement have on the Ethereum network?
According to some professionals, the complaint will certainly get noticed despite the assurances that the SEC has tried to give. Indeed, his subsequent intervention did not really reassure the investment community.
As a reminder, the latest merger on the Ethereum network has left investors in a bind. Some are reluctant to invest in the ETH token because of possible centralization due to the SEC statement. They also expected the SEC’s authority over the tokens to give it some security. Meanwhile, other people are interested in the mechanics of ETH’s decentralization.