In a possibly unprecedented move hidden in the lawsuit’s 69th line, the SEC today claimed it has the power to prosecute Balina not just because his case involves US transactions, but also because the whole Ethereum network comes under US government jurisdiction.

In its complaint, the agency observed that the ETH delivered to Balina was confirmed by an American network of Ethereum blockchain nodes.
The SEC finds that these transactions occurred in the U.S.

The SEC seems to propose that since more Ethereum validating nodes are in the US than in any other area, all Ethereum transactions should be deemed American.
Etherscan says 45.85% of Ethereum nodes are in the US.
Germany’s second-highest node density is 19%.

If the SEC classifies Ethereum behavior as similar to that of an American securities market, it would claim authority over all activity on the purportedly decentralized Ethereum network.
It would increase the SEC’s oversight over Ethereum, where most NFT and DeFi activity occurs, and crypto in general.

SEC Chair Gary Gensler said last week, after Ethereum’s successful migration to proof-of-stake, that the shift may bring the network closer to the definition of security.

Gensler spoke before the Senate Banking Committee on how “staking” (pledging assets to a crypto network in return for passive benefits) may be regarded as a signal that an asset qualifies as a security under the Howey Test. He did not specify any particular cryptocurrency or network.

Under Gensler, the SEC has not taken an official position on Ethereum, despite prior leadership stating it was “sufficiently decentralized” and not a security.

The post SEC Asserts That All Ethereum Is Subject to US Law appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

After trading around the $38,000 mark, Bitcoin prices saw a jump during the day.  At press time, BTC is exchanging ownership for around $39,000. The upward trend follows the positive statement from the US SEC chair, Gary Gensler. 

Gensler in an interview with a popular mainstream media outlet said he has no doubt about the potential of Bitcoin. “This innovation — Satoshi Nakamoto’s innovation — if it is going to meet its potential, needs to come within public policy frameworks,” he said. Talking about cryptocurrencies he specifically endorsed Bitcoin as an innovation. 

Gensler himself worked as a lecturer at the Massachusetts Institute Of Technology and has been teaching blockchain and cryptocurrencies.  His remarks as SEC chair about Bitcoin is giving investors more confidence and that’s evident from the upward push after his media appearance. 

Experts have been bullish on Bitcoin and as the downward trend saturated at $38,000 for coin BTC, analysts are speculating a higher low. Bitcoin could soon cross the $40,000 mark, and it is very much possible that it happens before the weekend.

The post After Dropping Down To 38K, Bitcoin Is Going Up Again appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.