ETH’s connections suggest possible CCP influence in security discussion
Steven Nerayoff, a former advisor to Ethereum, has made public accusations against Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), claiming that Gensler has undisclosed ties with Ethereum. The accusations specifically relate to the upcoming launch of an Ethereum Exchange-Traded Fund (ETF).
Nerayoff’s statements have reignited the “ETH Gate” conspiracy theory, which suggests a deeper involvement of the SEC Chair with Ethereum. The theory alleges that Ethereum has unfairly evaded regulatory scrutiny from the SEC, despite the SEC consistently stating that ETH is not a security.
According to Nerayoff, the SEC, under Gensler’s leadership, has significant involvement with Ethereum. He points to the approval of Prometheum Inc., a securities marketplace, to categorize ETH as a security as evidence of this involvement. This move is seen as an indirect endorsement of an ETF by the SEC.
The approval from the SEC and FINRA has made Prometheum the only US-registered crypto securities platform. This has sparked controversy and scrutiny from Republican lawmakers who question the transparency of the SEC’s decision-making process.
Nerayoff has previously mentioned that Prometheum’s classification of Ethereum as a security goes beyond regulatory semantics. He believes it is a tactic by entities with ties to the Chinese Communist Party (CCP) to control the narrative and the crypto space.
Nerayoff’s claims also raise concerns about the influence of the CCP on Ethereum’s regulatory landscape and the potential centralization of the platform. He argues that if Ethereum is classified as a security, it would be perceived as a centralized asset influenced by the CCP.
These concerns are supported by on-chain researcher TruthLabs’ findings, which speculate that the CCP controls approximately 66.6% of the ETH supply. If validated, this level of control would significantly question Ethereum’s decentralized framework.
It is worth noting that Nerayoff himself faced legal issues in the past, with allegations of extortion against a cryptocurrency startup. However, these criminal charges were dropped by a New York judge after a lengthy legal process, highlighting the challenges faced by individuals in the cryptocurrency sector amidst regulatory scrutiny.
Read more: SEC chair Gensler addresses security breach and misleading Bitcoin ETF announcement on X
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