In a speech in August, the SEC stated that Ethereum is no longer a security, due to its decentralization. I believe they are wrong. In this legal analysis, I explain why I believe that the blockchain-based cryptocurrency is still a security under US securities law and jurisprudence, such as the Howey-test.
On Monday, North American Securities Administrators Association (NASAA) announced Operation Cryptosweep: one of the largest coordinated series of securities enforcement actions ever. If you have been following the crypto space over the last two years, this should not come as a surprise. In fact, it was inevitable. Still, the scope of Operation Cryptosweep is massive.
Just 8 months ago, a blockchain project called Tezos raised $232 million with an initial coin offering. It was the biggest ICO ever. Arthur and Kathleen Breitman, the young couple that founded the project, literally raised over 10x more than their wildest estimates. 8 months later, the couple and the project is facing four class action lawsuits. How could it all go so wrong?