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My understanding may be off, but I believe that Bitcoin will be able to avoid it but Ethereum may have a harder time due to the fact that contracts are pretty m

• anonporridge 3y ago
  Ethereum will have a harder time because they launched it with an ICO, sought out investors, and the Ethereum foundation explicitly allocated themselves a share of the initial coins. AND now after the migration to proof of stake, ownership of Ether effectively gives you voting rights and administrative control of the network, not unlike a security. Bitcoin was open and permissionless day one for anyone to mine, and Satoshi gave themselves no artificial privileges. The genesis block reward was unspendable. In practice, Satoshi ended up with a huge pile of the coins, but there was nothing that could have prevented the unavoidable obscurity and lack of awareness of such a novel and unproven project. Ownership of coins also doesn't convey any direct administrative privileges in the network. And of course, initially the coins weren't worth anything. There aren't any reasonable arguments that bitcoin is a security, while there are reasonable arguments that ethereum is.