Blockchain and cryptocurrency experts have disputed the SEC’s claim that it has jurisdiction over Ethereum transactions. The United States Securities and Exchange Commission believes that because most of the Ethereum nodes are located in the United States, the transactions of this network are carried out in the United States.
According to Mihan Blockchain and quoted by Crypto Slate, this week the SEC Commission in its charges against crypto activist Ian Balina said that several US-based investors participated in an investment pool that was funded by Ethereum network nodes. have been confirmed. The SEC has acknowledged that since the majority of these nodes are located in the United States and the number of nodes located in the United States is more than in other countries, Ethereum transactions have been carried out in this country.
According to information Ethernodes Approximately 43% of Ethereum validating nodes operate in the United States. The second rank belongs to Germany, which has 12% of the mentioned nodes.
Considering the concerns about the censorship of transactions, if US lawmakers have judicial and legal authority over Ethereum, instead of putting pressure on the verifiers, they can easily censor transactions.
Experts disagree with the SEC commission
Meanwhile, several experts have disagreed with the SEC’s claim.
Adams Cochran, a university professor and consultant at Cinneamhain Ventures, said that the SEC had the best conditions, but decided to use these conditions to bring all cryptocurrencies under its jurisdiction. He said in this regard:
This action by the SEC is completely unacceptable and should be strongly opposed.
Dylan LeClair of UTXO Management said that if the SEC’s claim becomes a legal decision, it could have very inappropriate effects.
Other members of the crypto community have also opposed the SEC.
Gary Gensler, chairman of the SEC, said that cryptocurrencies that enable equity trading may qualify as securities under the Howie test. This statement was released a few hours after Ethereum moved to the Proof of Stake consensus mechanism.