Why ETH will be labeled a security very soon…

People can argue day and night that Ethereum does not pass the Howey test, and therefore, is not a security.

However, these people have failed to look at the bigger picture. Namely, the consequences for the government if they were to deem ETH as a commodity.

First, they would get sued by virtually every single crypto project in existence which does get labeled a security. Will the government be able to justify in court why ETH was given a special carve out?

Second, by labeling ETH as a commodity, they will have essentially ended the concept of a "company". They will have provided a blueprint on how any new venture can simply create a blockchain, follow Ethereums tokenomics, and avoid being labeled a security.

By following this "ethereum standard", everything going forward will be an unregulated commodity. In fact, I can imagine a scenario where established companies dissolve themselves and re-form again using the "ethereum standard" specifically so they can delist as a security and be an unregulated commodity. Google will be a commodity. Facebook will be a commodity. Everything will be a commodity.

Does anyone really believe the government is going to allow that? If so, I would argue that you are being intellectually dishonest and your opinion is driven by pure hopium which has been fed to you by ETH maxis who are incapable of seeing the bigger picture.

So... for those of you thinking that XRP is going to win their case... keep dreaming. The SEC cannot afford to lose and they will not lose. The XRP case is what they will use as precedent to label all cryptos that had a pre-mine or VC backers to be labeled a security.

And for those of you still relying on the idea that ETH or XRP don't pass the Howey test, don't kid yourself. They will just change the law. The consequences of labeling ETH a commodity are far too great for the government.