BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Federal Regulators are Preparing to Pass Judgment on Ethereum

BlockNews Team by BlockNews Team
October 9, 2022
in CRYPTO, MEDIA, POLITICS
Reading Time: 3 mins read
1
SHARES
20
VIEWS
Share on XShare in TelegramShare on Reddit

The Securities and Exchange Commission is preparing to pass judgment on Ethereum that extends far beyond the boundaries of the United States.

SEC’s Crypto Regulation Spree

The Securities and Exchange Commission of the United States regulators is preparing to pass judgment on Ethereum. Officials, notably SEC Chairman Gary Gensler, have threatened to proclaim Ether as an unregistered security. In September, the SEC started a spree of crypto regulation.

At SEC Speaks conference, officials pledged to keep taking enforcement proceedings and invited market participants to come in and register their goods and services. To reduce conflicts of interest and improve investor protection, Gensler even recommended that cryptocurrency intermediaries separate into independent legal entities and register each of their roles, such as exchange, broker-dealer, custodial duties, etc.

SEC’s Announcement

The Division of Corporation Finance of the SEC disclosed that they would add an Office of Crypto Assets and an Office of Industrial Applications and Services to its Disclosure Review Program this fall to help register crypto market participants. Then, in testimony before several Senate Committees, Gensler reaffirmed his conviction that all digital assets are securities, implicitly endorsing his stance that these digital assets and pertinent intermediaries should register with the SEC.

SEC’s Statement on Ethereum PoS

The SEC’s campaign against Ethereum delivered a seismic blow, radically changing a détente that had existed for years. Whereas, in the past, the SEC had declared that Ether and Bitcoin were not securities. Gensler pointed out that Ethereum switching from proof-of-work to proof-of-stake (PoS) could bring Ethereum under the SEC’s jurisdiction because implementing a staking protocol leads the investing public to anticipate gains based on the efforts of others.

Later, the SEC suggested in a complaint filed against a token promoter that because a higher number of Ethereum nodes are in the U.S. than in any other country, all transactions taking place on the Ethereum blockchain may be subject to SEC regulation. These SEC views on Ethereum seem to some as a blatant overreach on the part of the SEC. While others may welcome U.S. leadership for a cryptocurrency regulation frame

A History of SEC & ETH

Starting in 2018, William Hinman, the SEC’s Director of Corporation Finance, declared that Bitcoin and Ether were not securities from the agency’s perspective. This had its roots in Ethereum’s decentralization and the distinction between digital tokens and cryptocurrencies, which serve as substitutes for traditional currencies and assets revolving around ventures.

The SEC has suggested that Ether may now be considered a security under the Howey Test if it is an investment of money involved in a joint enterprise with a reasonable expectation of profits obtained through the efforts of others. However, Ethereum’s Merge to PoS has potentially muddied the waters in this regard. It’s unclear how the Merge may have significantly altered Ethereum’s decentralized structure and goals to transform it into security (it still resembles Bitcoin more than digital tokens).

Second, the SEC’s claim that transactions on the Ethereum blockchain are subject to U.S. jurisdiction because more of that cryptocurrency’s nodes are situated there than anywhere else would significantly extend the SEC’s jurisdiction beyond the country. According to that logic, the SEC may claim jurisdiction over an Ethereum-based token created in Germany and offered and sold there exclusively to Germans because the U.S.’s cluster of Ethereum nodes makes it appear that the transactions occurred there. Such a result would seem very unlikely to meet legal requirements.

Conclusion

All of the SEC’s belligerent acts foreshadow legal action against Ethereum and foreign entities for their efforts on cryptocurrency. This, “Come in and talk to us—and register,” is a negotiation ploy designed to intimidate the industry into willingly submitting to the SEC’s jurisdiction. Because if Ethereum is in danger of being classified as a security or exchange, then all other decentralized finance platforms in the market must be, too, except Bitcoin (for now).

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: cryptoethereumPoliticsRegulation
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Peter Brandt Says Bitcoin Could Hit $250K — But There’s a Catch
BITCOIN

Peter Brandt Says Bitcoin Could Hit $250K — But There’s a Catch

October 22, 2025
Aptos Surges as BlackRock and Jump Crypto Spark Fresh Momentum
CRYPTO

Aptos Surges as BlackRock and Jump Crypto Spark Fresh Momentum

October 22, 2025
Hong Kong Approves First Solana ETF as Trading Volume Explodes 40%
CRYPTO

Hong Kong Approves First Solana ETF as Trading Volume Explodes 40%

October 22, 2025
Cardano Plans to Apply for .ada and .cardano Domains — A New Chapter for the Ecosystem
CARDANO

Cardano Plans to Apply for .ada and .cardano Domains — A New Chapter for the Ecosystem

October 22, 2025
Tesla Makes $80 Million in Profit From Bitcoin Holdings: Here is Why TSLA Refuses to Sell its BTC
BITCOIN

Tesla Makes $80 Million in Profit From Bitcoin Holdings: Here is Why TSLA Refuses to Sell its BTC

October 22, 2025
Stablecoin Supply Surges as Ratio Hits Two-Year Low — A Quiet Signal Before the Next Move
CRYPTO

Stablecoin Supply Surges as Ratio Hits Two-Year Low — A Quiet Signal Before the Next Move

October 22, 2025
Load More

Related News

Peter Brandt Says Bitcoin Could Hit $250K — But There’s a Catch

Peter Brandt Says Bitcoin Could Hit $250K — But There’s a Catch

October 22, 2025
Aptos Surges as BlackRock and Jump Crypto Spark Fresh Momentum

Aptos Surges as BlackRock and Jump Crypto Spark Fresh Momentum

October 22, 2025
Hong Kong Approves First Solana ETF as Trading Volume Explodes 40%

Hong Kong Approves First Solana ETF as Trading Volume Explodes 40%

October 22, 2025
Cardano Plans to Apply for .ada and .cardano Domains — A New Chapter for the Ecosystem

Cardano Plans to Apply for .ada and .cardano Domains — A New Chapter for the Ecosystem

October 22, 2025
Tesla Makes $80 Million in Profit From Bitcoin Holdings: Here is Why TSLA Refuses to Sell its BTC

Tesla Makes $80 Million in Profit From Bitcoin Holdings: Here is Why TSLA Refuses to Sell its BTC

October 22, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews