October 3, 2022

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The SEC claims jurisdiction over Ethereum because most nodes are located in the United States

The SEC claims jurisdiction over Ethereum because most nodes are located in the United States

The Securities and Exchange Commission (SEC) states that Ethereum transactions take place in the United States because most Ethereum nodes are located in the United States. This is Argument There’s the SEC’s September 19 lawsuit against crypto YouTuber Ian Paulina.

What is it about?

The SEC believes Ian Paulina brought an unregistered security to market in 2018 with Sparkster’s (SPRK) ICO. “Because most of the endpoints are located in the United States, those transactions took place in the United States,” the SEC said.

At this point, it’s unclear whether the SEC’s request will hold up in court. Clearly the SEC has a point about nodes. Currently, according to statistics, 42.56 percent of the 7,807 Ethereum nodes are located in the United States. Ethernodes. According to Dr. Aaron Lane, an Australian lawyer and researcher at the RMIT Blockchain Innovation Hub, said the distribution of nodes was irrelevant in this case.

Payment is not network related

According to Lane, it is appropriate to have an American criminal and defense attorney and that is the grab of American investors. According to him, it doesn’t matter if the payment is made through Ethereum, Mastercard or any other payment network. While the SEC’s claim is an interesting one, Lane says it will have no bearing on future cases.

The lawsuit against Paulina began after Sparkster and its CEO Sajjad Daya recently reached an agreement with the SEC to pay $35 million in restitution to victims. Ian Paulina says the allegations against him are invalid and that he has refused a deal with the SEC to prove them in court.

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