Market Analysis Report (10 Mar 2023)

Market Analysis Report (10 Mar 2023)

Source Node: 2002647

Seychelles-based cryptocurrency trading platform KuCoin has been hit with a lawsuit filed by New York Attorney General Letitia James, which alleges the exchange violated securities laws.

The lawsuit specifically targets tokens, including the second-largest cryptocurrency by market capitalization Ether, alleging these meet the definition of a security, without registering with the attorney general’s office.

The lawsuit marks the first time a regulator has claimed in court that Ether is a security, despite Securities and Exchange Commission Chairman Gary Gensler hinting that the agency might consider it as such.

While the Commodity Futures Trading Commission has previously maintained that both Bitcoin and Ether are commodity assets, James argues that Ether falls under the Martin Act, a 102-year-old anti-fraud law that gives her office the power to investigate securities fraud and take legal action against violators.

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