Is Ethereum Headed Towards Securities Status?

In the midst of the SVB meltdown, the following Coinbase’s Wells notice as well as CFTC suing Binance and its founder, the fact that the New York Attorney General called Ether a security — in a lawsuit against crypto exchange KuCoin — had almost gone unnoticed.

This statement has far-reaching implications for most cryptocurrencies, crypto exchanges that list them, and the health of the crypto market as a whole!

Since the very day of the Ethereum Merge, the Securities and Exchange Commission (SEC) forewarned: ETH, from now on, meets the criteria of a security.

Therefore, it was only a matter of time before the debate over whether ETH was a security or not was brought to court.

That’s exactly what happened on March 9th, 2023.

In the lawsuit, the NYAG did not hesitate to lump ponzinomic LUNA/TerraUSD (UST) with ETH.This is a clear indication that Ethereum, widely regarded as the most “respected” entity in web3, will be made an example and a warning for all.

Today, we will explore why Ethereum is on its way to becoming a security and what is at stake, namely the statute of…