SEC lawsuit claims jurisdiction as ETH nodes are 'clustered' in the US

The Securities Exchange Commission has made an unprecedented claim that Ethereum transactions take place in the United States as ETH nodes are “clustered more densely” in the United States than any other country.is found within a Sept. 19 lawsuit against crypto researcher and YouTuber Ian Balina, which alleged, among many other complaints, that Balina conducted an unregistered offering of Sparkster tokens when he formed an investing pool on Telegram in 2018.

The SEC claims that at the time that U.S.-based investors participated in Balina’s investing pool, the ETH contributions were validated by a network of nodes on the Ethereum blockchain, “which are clustered more densely in the United States than in any other country.”At this stage, it is unclear whether such a claim will hold up in court, or whether there is any legal precedent at stake. However, currently 42.56% of the 7807 Ethereum nodes currently situated in the U.S.

“The fact that we’ve got a U.S. based plaintiff, a U.S. based defendant and transactions flowing from the U.S. is what is most relevant here. It doesn’t matter whether the payment was done on Ethereum, Mastercard or any payment network for that matter.” Lane said that while SEC’s claim was an interesting one, he added that even if Balina’s lawyers don’t contest the issue of jurisdiction, it’s not going to have any impact on future cases for now:

“The defense may concede jurisdiction here, and if they do it won’t be an issue, and if it’s not a contested issue then the court won’t say anything about it. Any concern about legal precedent at this stage is premature.”

ETH is now completely centralized. Thanks the merge!

SEC will push away everything crypto out of the US with their ham fisted powergrab attempts to regulate stuff they dont even comprehend. How is that for 'consumer protection' (let everyone else protect crypto, thats a sound approach guys)

The difference is simple. POW is decentralised whereas POS is centralised. ETH is going to be classified as a security. The SECGov and GaryGensler are watching this space carefully.

Bitcoin fixes this!

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