How does the SEC's action against Balina protect investors?

“The SEC’s action against Balina further protects investors by seeking to hold accountable an alleged crypto asset promoter for failures to follow the federal securities laws.” The SEC’s order finds that Sparkster and Daya violated the offering registration provisions of Sections 5 (a) and 5 (c) of the Securities Act of 1933.

Should the SEC classify Ethereum as a Securities Exchange?

If the SEC were to successfully classify activity on Ethereum as akin to that on an American securities exchange, it would amount to the regulatory body laying claim to jurisdiction over all activity on the ostensibly decentralized Ethereum network.

Does US government have jurisdiction over Ethereum transactions?

In a civil complaint against a crypto influencer, the SEC suggested that it believes the U.S. government has jurisdiction over all Ethereum transactions. SEC Chair Gary Gensler. Image: SEC.

Did Balina send ETH to the US?

In its complaint, the regulator noted that the ETH sent to Balina was “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 then concludes: “As a result, those transactions took place in the United States.”