With recent essential improvements like the Merge, Ethereum [ETH] has become one of the most discussed cryptocurrencies in recent weeks. The switch to proof-of-stake [PoS] on the network has contributed to speculation that ETH is a security.
The SEC’s recent declaration in its lawsuit against cryptocurrency influencer Ian Balina that ETH transactions are subject to US jurisdiction gives credibility to this idea. This is because most nodes are reportedly operated from within the nation.
Balina was accused of selling tokens without first registering them. Due to his failure to register his venture as security before launching an ICO in 2018, he is now in big trouble. The crypto influencer flatly refuted those allegations.
There it is
The supermassive black hole sized bad take at the heart of the Balina filing
h/t @LordBogdanoff https://t.co/ZopOGQchU4 pic.twitter.com/ucn5sZkK5b
— laurence (new york variant) (@functi0nZer0) September 19, 2022
On the other hand, the crypto world is now speculating on the SEC’s huge statement in the complaint. In the 69th paragraph, the lawsuit asserts that the SEC has jurisdiction over the Ethereum network, giving it the power to file suit against Balina.
As far as we can tell, several people from the United States contributed to the Balina investment pool. Many ETH contributions were further validated by a network of nodes on the Ethereum blockchain.
Will this impact the Ethereum network negatively?
After the Merge, the Ethereum network faced significant opposition. Earlier, we saw speculation that the SEC may get involved since the network was starting to seem like security. Yet some were mocking how decentralized ETH is.
Amid this, the SEC’s most recent announcement would harm the system. Various attorneys pointed out that the complaint’s wording would have no legal weight, but it would still get people’s attention.
1. This is absurd.
2. If this holds up, thanks for giving away the entire game to get Ian. pic.twitter.com/FxR0pZAIrT
— 219.eth (@219_eth) September 19, 2022