“All ethers are American” – When the SEC wants to tax the whole world

Extraterritoriality pros – To maintain the hegemony of their dollar, the United States have become extraterritoriality specialists. The United States has assumed the right toto intervene and poke their noses wherever dollar exchanges take place. The Securities and Exchange Commission (SEC) would like to arrogate to itself this same right over… the ethers of Ethereum (ETH).

Ethers subject to the unhealthy extraterritoriality of the USA?

Clearly, the SEC doesn’t seem to want to grasp the concepts ofuniversalism and of decentralization which are nevertheless inherent to Bitcoin (BTC) and cryptocurrencies.

The present SEC delusion started from the influencer case Ian Balina. As Decrypt reports in particular, it was initially a banal story ofInitial Coin Offering (ICO) launched in 2018 and not declared to the Commission – as it has hundreds at the time.

Except that in the document filed by the SEC before the Court of the Western District of Texas appears an aberration, Do not be scarred by words. Slipped discreetly into a few lines of the 16th page of this document, is a potential earthquake: to consider that the ether transactions take place at United States.

“The American investors in the Balina pool irrevocably committed themselves to the transaction when, from the United States, they sent their ETH contributions to the Balina pool. At that time, their ETH contributions were validated by a network of 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. »

Extract from the SEC complaint against Ian Balina – Source: sec.gov

The US SEC wants to have a stranglehold on ethers

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A majority of ETH nodes in the USA, so it’s “our jurisdiction”

Let’s try to get into the brain full oframpant authoritarianism of the SEC. If the Securities Commission finds that the (yet global and decentralized) transactions of Ethereum ” occur “ in the USA, it is because approximately 46% of validation nodes of the network would be located there.

According to the Ethereum Node Tracker tool from Etherscan (see below), the United States would thus be ahead of theGermanywhich would bring together approximately 18.7% ETH nodes, and the Russia who would gather 5% on his floor.

“Saying this characterizes trading on the Ethereum blockchain as trading on a US stock exchange. (…) Which, from their regulatory point of view, is practical. It makes things so much easier [pour la SEC]. (…)”

Brian Fyre, law professor at the University of Kentucky

Ethers mostly validated by nodes located in the United States.
Breakdown of Ethereum network nodes by country – Source: etherscan.io

There is not that the China to take authoritative decisions against cryptocurrencies. And again: at least China only attacks cryptos within its borders. An increasingly worrying behavior of the SEC, including the president Gary Gensler more recently threatened Ethereum with requalify its ether into securities (securities)following its recent move to Proof of Stake (PoS) with The Merge.

The time for state interest in Bitcoin has come. And you, what are you doing to prepare for the future? Start getting acquainted with this exciting world, and don’t wait any longer for yourself create an account on Binancethe reference Bitcoin and crypto exchange (commercial link).

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