The inevitable already happened. Ethereum is a captured project by the US government: Tornado Cash, 45% of the Ethereum validators now follow the US Sanctions, and more to come.

The Fall of Ethereum’s Tornado Cash

A few weeks ago, the U.S. Department of the Treasury’s Office of Foreign Assets Control – also known as OFAC – sanctioned Tornado Cash. This cryptocurrency mixer mixes cryptocurrencies together to make it hard to track their history. Unfortunately, Tornado Cash is easy to suppress because its developers are known and its frontend servers are hosted on US soil.

Let’s Not Pretend It’s Not A Security

Ethereum is a security based on the Howey Test. It’s like a company because of proof-of-stake. The more you have, the more influence you have over the network. It’s the recreation of the current system. The more shares you have within a company, the more power you have over a company’s direction or decisions.
If you have no problem with that, it doesn’t matter if Ethereum is a captured project just as it doesn’t matter if you buy one or two TSLA stock or a stock market index like QQQ or VTI.