Is the SEC in charge of Ethereum?

Overview

• Is Ethereum PoS a security?
• Wintermute hacked.
• SEC claims jurisdiction over Ethereum.
• Upcoming Fed and FOMC bps rate hike.

Good morning Banter Fam,

Now that ETH has made a successful big leap from a Proof of Work (PoW) to a Proof of Stake (PoS) Consensus method, you may be wondering what the legal side of things is. How will Ethereum PoS be viewed in the eyes of the law and the regulators?

Essentially, is ETH a security?

Thankfully we can all thank Adam Cochran for this amazing contribution of his, a site that is dedicated to reviewing the technical and legal status of securities law related to Ethereum (PoS) called “Is Ethereum a Security?”. The page details an outline of the Howey Test and how it should apply to Ethereum PoS, with each clause being backed by citations from past SEC cases.

As stated on the website:

“[..] we believe most of the views of Ethereum being a security can be resolved through a nuanced technical understanding of the protocol.”

Here is Cochran’s thread about the page.

1/9

You've probably seen the bad legal takes and maxi screeches that "Proof of Stake is a security!" but felt there wasn't a resource to solve this.

So I went ahead and made one:https://t.co/splf30ft12

— Adam Cochran (adamscochran.eth) (@adamscochran) September 18, 2022

Market update 🌍

BTC/USDT 1D

Yesterday, BTC ended the day at $19,537 which was an increase of +0.62% for the day.

At the time of writing BTC is sitting at $19,322, an already -1.10% drop today which has eclipsed yesterday’s small price action.

This is as BTC continues to experience sideways action in its current range, around the 19th of June. This week’s FOMC will most likely be a catalyst to define a direction for BTC, the crypto market overall, and the traditional markets.

High-resolution chart

ETH/USD 1D

ETH saw some moderately healthy price action yesterday, moving up to close the day at $1,376, a +3.11 increase.

Today, at the time of writing, it is standing at $1,357, which is a decrease so far for the day of -1.35%.

Tomorrow’s FOMC meeting will most likely bring volatility for ETH.

High-resolution chart

US markets close	Gain/Loss
S&P 500	+26.56 (0.69%)
Nasdaq	+86.62 (0.76%)
Dow	+197.26 (0.64%)
VIX	−0.17 (0.65%)

Notable Gainers (24h):

Protocol (Coin)	Price ($)	Gain (%)
Terra Luna Classic (LUNC)	$0.00030237	10.7%
Chiliz (CHZ)	$0.252252	9.3%
Terra (LUNA)	$2.82	9.1%
Lido DAO (LDO)	$1.81	8.6%
Kava (KAVA)	$1.55	7.6%

Bitcoin Fear and Greed Index	23
“Crypto” Google Trends 90d	63
“Bitcoin” Google Trends 90d	37

Newswatch 📰

Wintermute hacked. Wintermute’s DeFi operations have been hacked for roughly $160m, with their CeFi and OTC operations not being affected.

SEC jurisdiction over Ethereum. The SEC has made claims that the US government has jurisdiction over all Ethereum network transactions.

WonderLand Pushing Forward. A new Medium article has been published by the Wonderland Team, addressing Wonderland’s transition to a fully decentralized DAO.

The Fed bps rate hike. The FOMC is incoming and the markets are wondering what the best and worst case scenarios are regarding a US Federal Reserve bps rate hike in September. This thread goes into some more detail on the subject.

News tidbits:

• Canto 54% emission reduction and LM incentives proposal passed.
• StarkNet Roundup #33.
• Breakdown GMX exploit analyzed.
• A financial risk analysis of Solend.

NFT & metaverse update 🐵

• NFTs make their way into Minecraft and GTA 5 servers.

• Autograph, the NFT company co-founded by Tom Brady, is set to create official PGA Tour collectibles.

Banter’s take

Market sentiment is still experiencing sideways action too. Until we get another major catalyst, it seems this may remain the case.

We have the FOMC meeting tomorrow. And this will most likely bring with it some market volatility. Most market participants expect a 75bps – 100bps rate increase according to the CME FedWatch Tool. 

Stay safe fam!

https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

Gabri

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Disclaimer

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All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.