In a lawsuit against a well-known member of the crypto community and YouTuber Yan Balina, the agency indicated that all operations in the blockchain of the second largest cryptocurrency by capitalization take place in the United States.
The US Securities and Exchange Commission (SEC) claims that transactions on the Ethereum network take place in the United States because blockchain validators (network nodes) are clustered more densely in the US than in any other country. This statement was made in a lawsuit against a well-known member of the crypto community, Jan Balina. The lawsuit was filed on Monday, September 19. Balina is accused of violating the law while promoting the Sparkster (SPRK) cryptocurrency ICO in 2018, which raised about $30 million from 4,000 investors.
This is not the first time the agency has initiated such a lawsuit. However, paragraph 69 of the document states (and this is, oddly enough, true) that the Ethereum transactions sent by Baline’s contributors were “verified by a network of nodes (nodes) on the Ethereum blockchain, which are clustered more densely in the United States than in any other country. Therefore, these transactions took place in the United States.” According to Etherscan, over 46% of all Ethereum nodes currently operate in the US. 18.6% of nodes are located in Germany, Russia takes the third place in this list – 5% of nodes.
Meanwhile, the world’s second-largest cryptocurrency, Ethereum (ETH), despite the SEC’s controversial announcement about Ethereum transactions, has shown a price jump of 4% over the past 24 hours. The spike in ETH prices is most likely due to the US market showing strength after a major sell-off last week. The US market closed higher on Monday ahead of this week’s FOMC meeting. Investors are already forecasting a 75 basis point rate hike to curb inflation. But the Fed could also go further and announce a 100 basis point rate hike to tame soaring inflation. Note that after the “merger,” SEC Chairman Gary Gensler recently hinted that Ethereum staking could trigger securities laws.
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