The New York Attorney General’s office has declared that Ether is a security in the ongoing legal battle between cryptocurrency exchange KuCoin and the Attorney General’s office.
The lawsuit alleges that KUCOIN operated an unregistered securities exchange and unlawfully served New York customers without the required licenses. The Attorney General argues that KuCoin allowed the trading of various cryptocurrencies, including Ether, that meet the legal definition of securities under New York law.
If Ether is considered a security, it would be subject to the same regulations and oversight as traditional securities, which could lead to increased costs and legal hurdles for those who deal in cryptocurrency.
The case is ongoing, and it remains to be seen how the court will ultimately rule on the Attorney General‘s declaration that Ether is a security. However, the Attorney General’s statement could signal a shift in how cryptocurrencies are regulated and could lead to more scrutiny of the industry in the future.
CoinMarketCap.com’s data reveal that KuCoin ranks fourth among cryptocurrency exchanges in both spot trading and derivatives trading. As of Wednesday, more than $500 million worth of digital assets were traded on KuCoin’s spot exchange in 24 hours, while the exchange’s derivatives trading volume exceeded $1.7 billion over the same period.
The issue of whether or not crypto assets qualify as securities and are therefore subject to SEC regulations and jurisdiction is currently under scrutiny on various fronts, with ongoing litigation surrounding the matter.
