Share this article
SEC’s Gensler Signals Extra Scrutiny for Proof-of-Stake Cryptocurrencies: Report
Speaking after the Merge (but not specifically about Ethereum), SEC Chair Gary Gensler said proof-of-stake cryptos could be investment contracts that subject them to securities regulations.
By Danny Nelson
Updated May 11, 2023, 6:37 p.m. Published Sep 15, 2022, 7:42 p.m.
Make us preferred on Google
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler on Thursday said that staked cryptocurrencies may be subject to federal securities regulations, repeating a pro-oversight stance in the wake of Ethereum’s transition to just such a method.
According to the Wall Street Journal, Gensler said that proof-of-stake (PoS) blockchains, which generate new coins for inventors who pool their holdings, take on investment contract-like attributes that could bring them under his agency’s purview. He said he wasn’t talking about a specific coin, according to the Journal.
STORY CONTINUES BELOW
Huwag palampasin ang isa pang kuwento.Mag-subscribe sa State of Crypto Newsletter ngayon. Tingnan lahat ng newsletter
Still, the comments, which came hours after Ethereum completed its PoS transition via the Merge, indicate that the milestone tech upgrade may carry greater ramifications for the second-most popular blockchain than simply cutting its energy usage. As a proof-of-work chain, its native ether token was one of only two cryptos – the other being bitcoin – clearly defined as commodities by federal regulators.
Read more: CFTC Already Preparing to Be Crypto Watchdog, Behnam Tells US Senators
Higit pang Para sa Iyo
Higit pang Para sa Iyo
Crypto group counters Wall Street bankers with its own stablecoin principles for bill
After the bankers shared a document at the White House demanding a total ban on stablecoin yield, the crypto side answers that it needs some stablecoin rewards.
Ano ang dapat malaman:
- The U.S. Senate's crypto market structure bill has been waylaid by a dispute over something that's not related to market structure: yield on stablecoins.
- The Digital Chamber is offering a response to a position paper circulated earlier this week by bankers who oppose stablecoin yield.
- The crypto group's own principles documents argues that certain rewards are needed on stablecoin acvitity, but that the industry doesn't need to pursue products that directly threaten bank deposits business.
Top Stories
