SEC lawsuit claims jurisdiction as ETH nodes are 'clustered' in the US
The SEC argues that as ETH validators are concentrated more densely in the United States, ETH transactions are seen as taking place in the country. The Securities Exchange Commission (SEC) has made an unprecedented claim that Ethereum transactions take place in the United States as ETH nodes are “clustered more densely” in the United States than any other country. The SEC argument is found within a Sept. 19 lawsuit against crypto researcher and YouTuber Ian Balina, which alleged, among many other complaints, that Balina conducted an unregistered offering of Sparkster (SPRK) tokens when he formed an investing pool on Telegram in 2018. The SEC claims that at the time that U.S.-based investors participated in Balina’s investing pool, the 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.” The SEC argued that as a result, “those transactions took place in the United States.”...