The U.S. Securities and Exchange Commission (SEC) made an unprecedented claim, arguing that Ethereum transactions take place in the United States, as nodes are concentrated here more than in any other country.
The SEC made the allegation at the hearing on Sept. 19 in its lawsuit against crypto researcher and YouTuber Ian Balina. made. The lawsuit accuses Ian Whale, among many other charges, of creating an investment group on Telegram in 2018, offering an unregistered Sparkster (SPRK) token.
According to the SEC, when US investors joined Whale’s investment pool, their ETH contributions were also verified by the node network on the Ethereum network, and these nodes (nodes) are more densely clustered in the US than in any other country in the world.
This means that the transactions in question took place in the United States, according to the SEC.
It is unclear at the present stage whether such a claim would be valid in court or if it had a similar legal precedent. ethernodes datasshowing that 42.56% of 7,807 ETH nodes are currently located in the USA.
Speaking to Cointelegraph, Australian lawyer Dr. Aaron Lane said that the distribution of Ethereum nodes is largely irrelevant to this case.
“Having a US plaintiff, a defendant, and a flow of transactions going through the country is the most important thing here. It doesn’t matter whether the payment is made on Ethereum, Mastercard or any other network.”
The SEC has previously been criticized for its zealous behavior in the crypto space and has been accused of trying to “regulate through sanctions.”