Former Ethereum Advisor Accuses SEC Chair of Undisclosed Ties with Ethereum
Steven Nerayoff, a former advisor to Ethereum, has made public allegations against Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), claiming that Gensler has undisclosed ties with Ethereum. Nerayoff specifically points to Gensler’s involvement in the expected launch of an Ethereum Exchange-Traded Fund (ETF).
The “ETH Gate” Conspiracy Theory Resurfaces
Nerayoff’s accusations have reignited the “ETH Gate” conspiracy theory, which suggests a deeper connection between the SEC Chair and Ethereum. According to the theory, Ethereum evaded regulatory scrutiny from the SEC, despite the SEC maintaining that ETH is not a security.
Approval for Prometheum Inc. Raises Controversy
Nerayoff claims that under Gensler’s leadership, the SEC has significant involvement with Ethereum. He highlights the approval given to Prometheum Inc., a securities marketplace, to classify ETH as a security. This approval is seen as an indirect endorsement of an ETF by the SEC.
Republican Lawmakers Question Transparency
The SEC’s decision-making process regarding Prometheum’s classification has sparked controversy and scrutiny from Republican lawmakers. They are questioning the transparency of the SEC’s actions and decision-making.
Nerayoff Raises Concerns about Chinese Communist Party (CCP) Influence
Nerayoff expresses concerns about the potential influence of the Chinese Communist Party (CCP) on Ethereum’s regulatory landscape. He suggests that classifying Ethereum as a security would imply centralization and CCP control over the asset.
Potential CCP Control Over ETH Supply
Nerayoff’s concerns align with 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 raise significant questions about Ethereum’s decentralized framework.
Legal Issues Surrounding Nerayoff
Nerayoff himself faced legal issues in the past, accused of extorting a cryptocurrency startup. However, these criminal charges were dropped by a New York judge, highlighting the complex legal landscape faced by individuals in the crypto sector amidst regulatory scrutiny.
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