Search Inside Bitcoins

The Merge might have Triggered the SEC to Create New Laws for it

SEC
SEC

Join Our Telegram channel to stay up to date on breaking news coverage

The switch to proof-of-stake for Ethereum could have put the virtual currency back within the sights of the Securities and Exchange Commission (SEC). The Wall Street Journal reported that SEC’s director Gary Gensler told journalists just after Senate Banking Committee last Thursday that virtual currencies and intermediaries that enable owners to wager their stablecoins may describe it as a safety underneath the Howey exam.

According to the WSJ, Gensler stated that from the point of view of the cryptocurrency, this is another indication that, according to the Howey exam, the average investor anticipates profits by relying on the endeavors of others.

The statements come on the very day that Ethereum switched to PoS, which means the system would no longer depend on power-intensive proof-of-work extraction; instead will enable auditors to verify transfers and develop new blocks through a staking procedure.

According to Gensler, letting coin owners stake their coin’s outcomes in the active investment public eagerly awaits profits relying on the endeavors of everyone else. Gensler continued by stating that intermediaries providing staking solutions to their clients appear identical to bank loans, with some categorizing differences.

Always on watch

The SEC earlier noted that it did not consider Ether a safety, despite both the Commodity Futures Trading Commission and the SEC consenting that it behaved more as a consumer good.

Tamadoge OKX

The SEC was already keeping an eye on the cryptocurrency space, especially those it claims are investment vehicles. The regulator is involved in a case encompassing Ripple Labs and the release of XRP’s coin.

The SEC has indeed pressed firms giving crypto loaning goods to sign up with them, along with a $100M penalty imposed last February on the BlockFi platform for failing to sign up massive interest financial records that SEC deems as securities.

Gabor Gurbacs, general manager of virtual assets strategic approach at VanEck, wrote on Twitter to his 49,300 supporters that he has been trying to say for six years that the POW to POS shifts can attract regulatory interest.

Gurbacs ended up going to make clear that regulatory authorities refer to pinning benefits as dividend payments, a highlight of Howey’s exam.

The Howey exam refers to a 1946 Supreme Court decision determining whether a money transfer qualified as a contractual obligation. When it does, it is regarded as security and therefore is subject to a Securities Act made in 1933.

Related

Tamadoge - Play to Earn Meme Coin

Our Rating

Tamadoge logo
  • Earn TAMA in Battles With Doge Pets
  • Capped Supply of 2 Bn, Token Burn
  • Presale Raised $19 Million in Under Two Months
  • Upcoming ICO on OKX Exchange
Tamadoge logo

Join Our Telegram channel to stay up to date on breaking news coverage

Read next

Don't see the answer that you're looking for?

Ask us Now!

X

Tamadoge - 'Play to Earn Dogecoin' With 10-50x Potential

Tamadoge - 'Play to Earn Dogecoin' With 10-50x Potential

Tamadoge - 'Play to Earn Dogecoin' With 10-50x Potential

X