If you ask Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), all proof-of-stake coins qualify as It is made for US financial law. This would mean that Ethereum and Cardano, among others, would fall under securities law and that all cryptocurrency exchanges would have to remove these tokens from their platform. Without a license you are not allowed to trade securities on their platform and parties such as Coinbase and Kraken do not have such licenses.
What is an effect?
In the world of finance, the term refers to It is made usually a financial instrument that can be traded on an exchange. Examples of clear securities are stocks, bonds, options and futures. An important feature of a security is that it must be a financial instrument with a specific profit expectation resulting from the activity of the company issuing the security.
According to Gensler, proof-of-stake coins qualify as securities under U.S. law and must be registered. “Usually a small group of entrepreneurs or developers is behind a proof-of-stake protocol. I advise these people to follow the rules as soon as possible, the same goes for intermediaries,” said Gary Gensler sternly but clearly.
Based on these statements, there seems to be a chance that the SEC, which previously shut down the Kraken staking program, will go after Coinbase as well. Gensler’s vision could have major implications for the future development of proof-of-stake coins in the United States and possibly even the rest of the world.
disagreement at the highest level
Surprisingly, Gensler’s view is at odds with that of Rostin Behnam of the Commodity Futures Trading Commission (CFTC). Both the SEC and CFTC believe they should have power over the cryptocurrency industry in the United States. It is currently unclear which organization is preferred in the country.
However, unlike Gensler, Behnam believes that Ethereum qualifies as a (digital) commodity alongside Bitcoin. This would mean that the tokens cannot be classified as securities from a financial point of view and the future of the token is not at risk.
This is a problem that will soon end anyway. The SEC definitely seems awake when it comes to cryptocurrencies in the United States, which could spell trouble for the industry. First it was Kraken, then Paxos, and now the Proof-of-Stake projects seem to be in trouble.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
