Is ether (ETH), the native cryptocurrency of the Ethereum blockchain and the second-largest by market cap behind bitcoin, an investment security?
The question has been a source of simmering speculation ever since Ethereum switched last year to a “proof-of-stake” blockchain network where investors can “stake” their coins in exchange for rewards – not too dissimilar from the interest that’s paid out on bonds.
A fresh allegation Thursday from a New York state regulator could push the legal debate back to the front burner.
In a lawsuit filed against Seychelles-based crypto-exchange KuCoin on Thursday, New York Attorney General (NYAG) Letitia James alleged the firm broke the law by selling unregistered securities. Among the unregistered securities listed in the suit was ether.
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