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SEC: Ethereum is fully under U.S. jurisdiction

In a recent case, the SEC argues that Ethereum blockchain transactions are fully under U.S. jurisdiction.

By Finst News
• 2 min read
SEC: Ethereum is fully under U.S. jurisdiction

In a recent case, the SEC says Ethereum blockchain transactions are fully under U.S. jurisdiction.

The U.S. Securities and Exchange Commission (SEC) has argued in a lawsuit against crypto influencer Ian Balina that Ethereum is fully under U.S. jurisdiction. This is stated in a paragraph of the complaint against Balina. He is being investigated for selling unregistered crypto assets as securities during the ICOs of his Sparkster tokens.

Among other things, the SEC claims Balina's ICO transactions were "validated by nodes on the Ethereum blockchain that were primarily concentrated in the U.S." The transactions were thus "all executed in the U.S." This opens the door for SEC regulation of Ethereum in the United States.

Just last Friday, the head of the SEC, Gary Gensler, said that Proof-of-Stake blockchains could fall under current securities laws. This could also affect the Ethereum blockchain after their switch in the consensus mechanism.

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