Over 1,000 people join class action against NYAG’s claim that Ethereum (ETH) is a security – Pro-Ripple lawyer says

• The Ethereum class action by Deaton comes amid increased fear of banking system failure following a $25 billion bailout by the Fed during the weekend.

• Ethereum price has broken out of a multi-week logarithmic downtrend that began in late 2021 to trade around $1,735.

The cryptocurrency market has been a hotly debated issue in the United States following the collapse of Terra Luna UST, FTX, Alameda Research, and Silvergate Capital. However, it is the thought of Ethereum getting classified as unregistered securities that has been giving most investors sleepless nights. Moreover, most successful decentralized applications (Dapps) run on the Ethereum network, and the ERC 20 tokens could get classified as unregistered securities in the process. 

Is Ethereum a Security?

Late last week, New York Attorney General Letitia James filed a lawsuit against the KuCoin cryptocurrency exchange for offering unregistered securities in the state. The lawsuit filed by Attorney General Letitia, marked the first time that a regulator claimed in court that the second largest digital asset is unregistered security. Furthermore, the United States Securities and Exchange Commission (SEC) chair recently indicated that all digital assets apart from Bitcoin are unregistered securities.

One by one, my office is taking action against cryptocurrency companies that are brazenly disregarding our laws and putting investors at risk.

said Attorney General James.

Today’s action is the latest in our efforts to rein in shadowy cryptocurrency companies and bring order to the industry. All New Yorkers and all companies operating in New York have to follow our state’s laws and regulations. KuCoin operated in New York without registration, and that is why we are taking strong action to hold them accountable and protect investors.

As a result, the founder of the crypto-law.us, John E Deaton, filed a class action lawsuit claiming that Ethereum is not a security. According to the XRP-affiliated lawyer, the class action lawsuit claiming Ethereum is not a security has over 1,000 supporters, with 57 from New York. Deaton noted.

We have over 1K with approximately 57 New Yorkers. It would be great to get a couple of hundred New Yorkers who want to speak up against the NYAG’s allegation that ETH is security.

The Ethereum class action by Deaton comes amid increased fear of banking system failure following a $25 billion bailout by the Fed during the weekend.

Market Outlook 

Meanwhile, Bitcoin and Ethereum prices have broken out of key resistance levels following the release of CPI data on Tuesday. According to our latest crypto price oracles, the total cryptocurrency capitalization has spiked by over 11 percent in the past 24 hours to stand around $1.17 trillion. As a result, Bitcoin price scaled as far as $26.4k, up over 15 percent. Ethereum price, on the other hand, has spiked over 10 percent to trade around $1,773. 

For the first time since the 2022 bear market began, Ethereum’s price has broken out of the logarithmic downtrend. Crypto analysts anticipate a multi-quarter consolidation before next year’s Bitcoin halving takes place.

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