With the help of Derek Robertson
As the Securities and Exchange Commission moves to expand its oversight of blockchain networksA new filing in a Texas federal court has put the crypto world on edge this week.
in the depths complaint Filed Monday in the Western District of Texas for allegedly providing unregistered crypto securities, the agency claims that because the nodes that operate the Ethereum blockchain “cluster more heavily in the United States than any other country,” transactions across the network have taken place in the United States. States.”
Some argue that the argument lays the groundwork for a widespread assertion of jurisdiction over any activity that occurs on Ethereum and other global blockchain networks with a significant US presence. While the industry debates the importance of deposits, many crypto watchers are expressing doubts that the SEC’s argument will sway the judge.
But there is a more pressing problem.
Judging by the information available from open source data tools, the Ethereum nodes are Notat present, More intense in the United States than any other country.
The US certainly hosts more Ethereum nodes than any other country, according to data from Etherscan And the Ethernodes.orgtwo analytics platforms that track the network.
As of early Wednesday afternoon, the platforms reported, respectively, that the United States hosts about 46 percent or 44 percent of nodes, with Germany coming in second by a wide margin in the two data sets. EtherScan attributes about 18 percent of nodes to Germany, while Ethernodes puts the number at around 12 percent.
But Germany has a much smaller population (84 million people) and territorial extent (about 130,000 square miles) than the United States, where its 330 million people are spread out over 3.8 million square miles. So in both cases determining density, the data indicate that nodes are clustered more densely in Germany than in the United States, on a per capita and square mile basis.
The SEC press office did not immediately respond to a request for comment about its definition of node density, but if the regulator provides more details about the rationale, I will report back in a future release.
Since the Securities and Exchange Commission also has a much clearer claim to jurisdiction in this particular case – US investors allegedly bought the token – it is unlikely that a full node density lawsuit will be filed this time around.
But questions about how to apply jurisdiction to economic activity that occurs on decentralized computer networks will not go away. US law enforcers have a long tradition of making bold and creative claims to jurisdiction over activities that largely occur abroad. Sometimes judges buy these arguments, sometimes they don’t.
At some point, questions about where the activity on the blockchain takes place, legally speaking, will likely be in court.
“As far as I can tell, there has not yet been a case where the location of a node is the only judicial hurdle,” said Peter Van Valkenburg, director of research at the Coin Center, a pro-crypto advocacy group. “If there was one, it would be a big fight.”
When it comes down to it, the conflict may be over the primes of the nodes, rather than their density.
Dust has begun to settle from the successful merger of Ethereum, He encourages environmental activists who oppose the power-hungry “Proof of Work” mining that underpins most cryptocurrencies (Ethereum included, until last week).
This morning, a group of environmentalists including New York Assembly member Anna Kellis gathered around to urge Gov. Cathy Hochhol to sign a bill passed by the state assembly in June that would put a moratorium on proof-of-work mining. Kelis, who compared the merger to “rebuilding a spacecraft in mid-flight,” called on the governor not only to sign the moratorium but also to shift the cryptocurrency industry to a more environmentally friendly “proof of stake” method collectively.
If the industry signs up, it could end up for reasons not entirely altruistic: After the merger was successfully completed last week, the head of policy at the Blockchain Association tweeted that it might too “ridiculous event“To potentially classify Ethereum as collateral, which would open it up to far-reaching regulation. Derek Robertson
As the United States proceeds (with caution) With its potential stablecoinAnd the Traders in Europe will now be allowed to use those backed by US dollars in the continent’s markets.
Bjarke Smith-Meyer of Politico has received a copy of the EU Final Draft Market in crypto asset bill (paywall), which removes what would have been a restriction on trading with dollar-backed stablecoins. Bjarke writes that “although there are a few euro-based stablecoins, the majority are pegged to the dollar and are widely used in the European market,” and notes that there is still a cap on their use in shoppingbut not for trading in other currencies.
This purchase cap is intended to discourage (likely non-European) tech giants from introducing a dollar-backed coin as a regular currency, such as Facebook Tried And Failed to do. As the European Union’s efforts to isolate itself With American dominance of the tech world becoming more prominent than ever, the last-minute legislative reshuffle is a reminder of just how great the challenge is. – Derek Robertson
Indonesia delegates Cryptocurrency exchanges should be governed by the citizens of the country.
It could be for future translation tools, so deadlyArchaeology.
Users are already sabotaging Content restrictions For the AI Stable Diffusion image generator.
Update for Meta VR headset is Make his own videos From the world of simulation more realistic.
Take a closer look at Graphics Card Wars Inadvertently triggered by cryptocurrency mining.
Stay in touch with the whole team: Ben Scheringer ([email protected]); Derek Robertson ([email protected]); Konstantin Kakays ([email protected]); And the Heidi Vogt ([email protected]). Follow us Tweet embed on Twitter.
Ben Schreckinger covers technology, finance, and policy for POLITICO; He is an investor in cryptocurrency.
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