🚨 Is Ethereum a Security? State Attorney believes it is...🚨
Yesterday New York State Attorney General Letitia James filed a suit against crypto exchange KuCoinCrypto as part of ongoing "efforts to crack down on unregistered cryptocurrency platforms". The suit claims that KuCoin is offering securities, including Ethereum (ETH). Alarmingly for the latter, this is the 1st time a regulator is claiming ETH is a security (rather than commodity). The court documents highlight the centralisation (a dirty word in an industry looking to decentralise) of ETH "Buterin and the Ethereum Foundation retain significant influence over Ethereum and are often a driving force behind major initiatives on the Ethereum blockchain that impact the functionality and price of ETH".
Recently the SEC cracked down on crypto exchange Kraken, forcing it to shut down its 'staking' business as it was selling unregistered securities. The current KuCoin suit suggests that "By shifting to proof-of-stake, ETH no longer relies upon competition between computers, but instead now relies on a pooling method that incentivizes users to own and stake ETH. The shift to proof-of-stake significantly impacted the core functionality and incentives for owning ETH, because ETH holders now can profit merely by participating in staking."
SEC Chair Gary Gensler stated in February that he considers everything but Bitcoin to be a security...
Full Court Document here: https://lnkd.in/eZZWhhVM
#cryptocurrency #ethereum #staking #bitcoin #security #blockchain
Alex
npub1ju…w9ysf
2023-03-10 09:04:03
Author Public Key
npub1ju62e6rcgf3gkxltzv9uxr6frv7rfytmkp975pxxgzmsd76q0cesjw9ysfPublished at
2023-03-10 09:04:03Event JSON
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"content": "🚨 Is Ethereum a Security? State Attorney believes it is...🚨\nYesterday New York State Attorney General Letitia James filed a suit against crypto exchange KuCoinCrypto as part of ongoing \"efforts to crack down on unregistered cryptocurrency platforms\". The suit claims that KuCoin is offering securities, including Ethereum (ETH). Alarmingly for the latter, this is the 1st time a regulator is claiming ETH is a security (rather than commodity). The court documents highlight the centralisation (a dirty word in an industry looking to decentralise) of ETH \"Buterin and the Ethereum Foundation retain significant influence over Ethereum and are often a driving force behind major initiatives on the Ethereum blockchain that impact the functionality and price of ETH\".\n\nRecently the SEC cracked down on crypto exchange Kraken, forcing it to shut down its 'staking' business as it was selling unregistered securities. The current KuCoin suit suggests that \"By shifting to proof-of-stake, ETH no longer relies upon competition between computers, but instead now relies on a pooling method that incentivizes users to own and stake ETH. The shift to proof-of-stake significantly impacted the core functionality and incentives for owning ETH, because ETH holders now can profit merely by participating in staking.\"\n\nSEC Chair Gary Gensler stated in February that he considers everything but Bitcoin to be a security...\n\nFull Court Document here: https://lnkd.in/eZZWhhVM\n\n#cryptocurrency #ethereum #staking #bitcoin #security #blockchain",
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