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ETH Up By 4 Percent Despite SEC Claiming Jurisdiction Over ETH

20-Sep-2022 By: Rohit Tripathi
ETH Up By 4 Percent

The world's second-largest cryptocurrency, Ethereum (ETH),

 has seen a 4% price increase in the last 24 hours despite the SEC's contentious assertion over Ethereum transactions.

On Monday, September 19, the Securities and Exchange Commission (SEC) filed a lawsuit against crypto influencer Ian Balina for failing to register his digital assets prior to his 2018 ICO offering.

However, after analyzing the fingerprint again, crypto analysts saw that the SEC was concerned about Balina's crypto transactions. However, the SEC also stated that the whole Ethereum network is under the jurisdiction of the US government. In its filing, the SEC noted that:

“The ETH sent to Balina was validated by a network of Ethereum blockchain nodes, which are more densely clustered in the US than in any other country. As a result, such transactions took place in the US.”

Currently, the United States hosts 45% of all Ethereum nodes. According to sources statistics, Germany has the second highest density of nodes at 19%. However, the SEC appears to suggest that because the United States controls the majority of ETH nodes, the securities agency can exercise jurisdiction over the global ETH network.

ETH Price Gains 4%

Following a strong sell-off over the weekend, the Ethereum price has rebounded 4% in the last 24 hours and is currently trading above $1,350. The SEC's harsh comments seem to have had no influence on investor confidence.

Furthermore, the ETH price hike comes as the US market recovers from last week's massive sell-off. On Monday, the US market closed in the green ahead of the FOMC meeting scheduled for September 21.

Investors anticipate a 75 basis point rate hike to curb inflation. However, the Fed might go even further and announce a rate hike of 100 basis points to tame the growing inflation.

It's worth noting that, just after the Merge, SEC chief Gary Gensler hinted that Ethereum staking might trigger securities regulations.

Read also: This Indian exchange prioritises stablecoins like Binance does

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