In the words of Gary Gensler, “The investing public is investing anticipating a return, anticipating something on these tokens, whether they’re proof-of-stake tokens, where they’re also looking to get returns on those proof-of-stake tokens and getting 2%, 4%, 18% returns.”
SEC Chairman Gary Gensler said Proof-of-Stake (PoS) cryptocurrencies can be considered securities under the current laws.
Shortly after the SEC officials voted on cybersecurity proposals on Wednesday morning, Gary Gensler claimed that users expect returns when they stake their assets on PoS protocols. According to him, this allows the SEC to consider PoS tokens securities instead of commodities.
The SEC Chair further noted that most PoS protocols consist of a small group of developers and entrepreneurs. As such, Gensler advised Proof-of-Stake token operators and intermediaries to “come into compliance” with the regulators.
Gensler made these claims days after CFTC chairman Rostin Behnam stated that Ethereum (ETH) and stablecoins are commodities.
Meanwhile, the SEC has remained steadfast in regulating the crypto industry over the past two months. In February, the regulatory agency launched a probe into Kraken, causing the latter to shut down its staking product for US clients. The SEC, along with the NYDFS, also filed objections to Binance.US' Voyager takeover plan.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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