The New York Attorney General (NYAG) has alleged that TerraDollar, Luna, KuCoin Earn, and ether are securities in a сотко арыз filed against KuCoin.
A New York-based detective was able to create a KuCoin account, fund it with ether, trade for tethers, Luna, and TerraDollars, and take advantage of KuCoin’s Earn product all while in New York.
The NYAG alleges that these tokens, including ether, are securities under New York state’s Martin Act “because they represent investments of money in common enterprises with profits to be derived primarily from the efforts of others.” This standard is very similar to the Securities and Exchange Commission’s (SEC) judicial Howey Test.
For ether the NYAG specifically cites the fact that the Ethereum Foundation and the founders retained a portion of the sale proceeds from the ICO. It also points to Ethereum Foundation representations which suggested ether could become more valuable, and highlights Buterin and the Foundation’s efforts to advance Ethereum’s transition to Proof-Of-Stake (POS).
Source: https://protos.com/is-ether-a-security-new-yorks-attorney-general-thinks-so/