According to the creator of the CryptoLaw initiative, an increasing number of individuals sharing similar views have united in a collective legal action against the New York State Attorney General, urging for the recognition of ether as a security.
John Deaton recently tweeted that over 1,000 members of the Ethereum community have already joined the lawsuit, which seeks to challenge the actions of the Attorney General.
Just four days prior, on March 10th, prosecutor Letitia James had declared ETH a security in a separate lawsuit involving the KuCoin cryptocurrency exchange.
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According to John Deaton’s recent statement, there is currently no imminent regulatory danger that poses a direct threat to the Ethereum network’s assets.
Nevertheless, the constant accusations of securities law violations by crypto firms from officials and regulators may potentially lead to complications for ETH in the long run.
In an earlier message, Deaton implored the Ethereum community to take swift action in addressing these accusations and to join the ongoing petition.
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Tom Grady, the founder of GradyLaw, has recently commented that the crypto industry might face a deluge of class action lawsuits due to ongoing investigations into potential breaches of federal securities regulations by Coinbase and Robinhood.
Grady’s concerns are that if these investigations lead to legal action, it could lead to a chain reaction of lawsuits that could threaten to overwhelm the entire cryptocurrency industry.
Given the current climate of increased regulatory scrutiny, Grady’s remarks underscore the need for crypto firms to remain vigilant and proactive in their compliance efforts.