According to the WSJ, SEC chair Gary Gensler believes cryptocurrencies that operate on PoS chains may be classified as securities 🤔
While the SEC chairman stressed that he wasn't talking about any digital asset in particular, his remarks are particularly ominous given how The Merge had taken place just hours earlier.
"From the coin's perspective… that's another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others." Crypto projects have faced action from the SEC before after launching initial coin offerings that the regulator regarded as an illegal securities offering.
Awkwardly, it may be the case that Ether wouldn't have been counted as a security had it continued to exist on a Proof-of-Work network.Coin Center — a non-profit focused on crypto policy — does not believe "the technological differences between PoW and PoS warrant any different treatment." A blog post explained:
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