Chairman SEC Gary Gensler suggested that Proof-of-Stake (PoS) consensus tokens could be considered securities under US law, reports The Block.
“Investors expect returns from these tokens, be it PoS assets, where they expect to earn a return of 2%, 4% or 18%. No matter what is promoted or invested in the protocol, they block coins in it,” Gensler said.
According to the head of the department, such protocols are often developed by a small group of entrepreneurs and developers. Gensler believes that all of these token operators must comply with the regulations. The same goes for intermediaries, Gensler added.
His comment came after a question from journalists regarding a recent statement by the Chairman CFTC Rostin Behnam. The latter confirmed that both he and his agency classify Ethereum as a commodity.
In February, Gensler hinted at the possibility of recognizing all cryptocurrencies, with the exception of bitcoin, as securities. His stance has been criticized by industry lawyers.
In September 2022, the head of the SEC, during a Senate hearing, admitted that PoS digital assets could receive a similar classification after passing howie test.
Recall that in 2023, the Commission took the first enforcement actions in relation to staking products. As a result, the Kraken exchange settled the charges from the SEC, agreeing to close the relevant program and pay $30 million in fines.
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Chairman SEC Gary Gensler suggested that Proof-of-Stake (PoS) consensus tokens could be considered securities under US law, reports The Block.
“Investors expect returns from these tokens, be it PoS assets, where they expect to earn a return of 2%, 4% or 18%. No matter what is promoted or invested in the protocol, they block coins in it,” Gensler said.
According to the head of the department, such protocols are often developed by a small group of entrepreneurs and developers. Gensler believes that all of these token operators must comply with the regulations. The same goes for intermediaries, Gensler added.
His comment came after a question from journalists regarding a recent statement by the Chairman CFTC Rostin Behnam. The latter confirmed that both he and his agency classify Ethereum as a commodity.
In February, Gensler hinted at the possibility of recognizing all cryptocurrencies, with the exception of bitcoin, as securities. His stance has been criticized by industry lawyers.
In September 2022, the head of the SEC, during a Senate hearing, admitted that PoS digital assets could receive a similar classification after passing howie test.
Recall that in 2023, the Commission took the first enforcement actions in relation to staking products. As a result, the Kraken exchange settled the charges from the SEC, agreeing to close the relevant program and pay $30 million in fines.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
