28 Dec 2022
SEC vs. Bitcoin? Former SEC attorney claims BTC is security
John Reed Stark, former head of the SEC's Office of Internet Enforcement, recently tweeted that bitcoin may be trading as an unregistered security.
Stark reacted after reading a tweet by Ethereum advocate Evan Van Ness expressing concern over the increasing centralization of the bitcoin mining industry.
"And once more, why does bitcoin not qualify as a security that has to be registered with the SEC?" John Reed Stark. former SEC attorney
On Twitter, Van Ness revealed that 850 of the previous 1,000 blocks on the Bitcoin network had been mined by just five companies: Antpool, FoundryUSA, f2pool, ViaBTC, and Binance. Data shows that these firms produce over 80% of all blocks, with Antpool and FoundryUSA accounting for over 50% of that total.
Bitcoin enthusiasts rejoiced earlier this year when U.S. Securities and Exchange Commission Chairman Gary Gensler reiterated his belief that bitcoin (BTC) is a commodity. Gensler's remarks lent credence to the view that bitcoin requires special treatment relative to other tokens traditionally categorized as “crypto.” The SEC is currently involved in a lawsuit against Ripple. It has made headlines by attacking other crypto entities, notably its ongoing case against ripple and its most recent attack against HEX. The current SEC official's recent statement may spark another attack on bitcoin. Pro-XRP activist and cryptocurrency attorney John Deaton have polled his followers on how they think the SEC v. Ripple lawsuit will turn out. The case is widely expected to settle rather than go to trial.
SEC's next move is still being determined amidst the unfolding drama. However, new rules from the SEC in 2023 could be a turning point for crypto investors in the US.
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