Ethereum might be FUCKED now because of FTX

Here’s why 🧵

The FTX collapse put a fire under regulators asses

Senators are calling for the SEC to enforce regulations ASAP

Ethereums switch to proof of stake had already put a huge target on it's back

Issuing coins and exchanges locking them up is considered an investment

Vitalik hiring developers and a marketing team is considered a common enterprise

This is the Howey test:

1. Investment of money
2. In a common enterprise
3. Expectation of profits
4. Derived from efforts of other

If you pass, you are considered a security by the SEC

Does Ethereum pass the test? Watch this video

Gary Gensler has said that Ethereum passes, so he thinks it's a security

The SEC has only said Bitcoin is not a security, because it is sufficiently decentralized

People have tried to say Ethereum is a commodity, but I don’t think the SEC will let that happen

If Ethereum is not on a security, then neither is any other proof of stake crypto

So what do I think is going to happen?

I think the SEC will come out and call 99% of Crypto's securities

If they do, exchanges and crypto companies will need to register with the SEC just like the stock market

Or else they will not be able to sell to Americans, like XRP

Disclaimer I love ETH and own a good amount in my portfolio

I still believe NFTs have the power to change the world

I am optimistic that the Ethereum foundation has the talent and money to make it through this darkness

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