In a civil complaint against Balina, a crypto influencer, the SEC claimed that all of Ethereum falls under US jurisdiction.

Why is it a problem?

The ruling in this case is likely to set a precedent for how future cases are decided. Concretely, the SEC could ask ETH validators based in the US to halt transactions. They could also force some "decentralized" apps to blacklist some vaults if they consider it can be used by hackers or hostile countries. Recently, a hacker having stolen $160 million, by exploiting a vulnerability in a Crypto Wallet, transferred his funds to a Curve vault... What will happen if the SEC decides to blacklist this vault like Tornado cash?

... and the castles made of sand... fall into the sea...

... eventually...

(Jimi Hendrix)