{"id":493432,"date":"2022-09-16T06:53:56","date_gmt":"2022-09-16T03:53:56","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ether-staking-could-trigger-securities-laws-gensler\/"},"modified":"2022-09-16T06:53:56","modified_gmt":"2022-09-16T03:53:56","slug":"ether-staking-could-trigger-securities-laws-gensler","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ether-staking-could-trigger-securities-laws-gensler\/","title":{"rendered":"# Ether staking could trigger securities laws \u2014 Gensler"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e30a825cd9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e30a825cd9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ether-staking-could-trigger-securities-laws-gensler\/#%E2%80%9D_Ether_staking_could_trigger_securities_laws_%E2%80%94_Gensler_%E2%80%9C\" >&#8221; Ether staking could trigger securities laws \u2014 Gensler &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ether_staking_could_trigger_securities_laws_%E2%80%94_Gensler_%E2%80%9C\"><\/span>&#8221; Ether staking could trigger securities laws \u2014 Gensler &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvY2E2YzgzMmUtNjk3Zi00ODg2LWIxNGQtNTM0ZWY2MTQxMjIwLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-6ebd806f>Ethereum\u2019s upgrade to proof-of-stake may have placed the cryptocurrency back in the crosshairs of the Securities and Exchange Commission (SEC).<\/p>\n<p>Speaking to reporters after\u00a0the Senate Banking Committee on Sept. 15, SEC chairman Gary Gensler reportedly said that\u00a0cryptocurrencies and inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ries that allow holders to \u201cstake\u201d their crypto may define it as a security under the Howey test, according to The Wall Street Journal.\u00a0<\/p>\n<p>\u201cFrom the coin\u2019s perspective [\u2026] that\u2019s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others,\u201d WSJ reported Gensler as saying.\u00a0<\/p>\n<p>The comments came on the same day as Ethereum&#8217;s (ETH) transition to proof-of-stake (PoS), meaning the network will no longer rely on energy-intensive \u201cproof-of-work\u201d mining and instead, allows validators to verify transactions and create new blocks in a process that involves \u201cstaking.&#8221;<\/p>\n<p>Gensler said that allowing holders to stake coins results in \u201cthe investing public anticipating profits based on the efforts of others.\u201d <\/p>\n<p>Gensler went on to say that intermediaries offering staking services to its customers \u201clooks very similar \u2014 with some changes of labeling \u2014 to lending.\u201d<\/p>\n<p>The SEC has previously said they didn\u2019t see ETH as a security, with both the Commodity Futures Trading Commission (CFTC) and the SEC agreeing that it acted more like a commodity. <\/p>\n<p>The SEC has been keeping a close watch on the crypto space, particularly those that it alleges are securities. The regulator has been embroiled in a case against Ripple Labs concerning the launch of the XRP token. <\/p>\n<p>The SEC has also pushed firms offering crypto lending products to register with them, including a $100 million penalty directed at BlockFi\u00a0in February for its failure to register high-yield interest accounts that the SEC considers securities.<\/p>\n<p>Gabor Gurbacs, director of digital assets strategy at American investment firm VanEck, tweeted to his 49,300 followers that he had been saying for over six years &#8220;that POW to POS transitions can draw regulatory attention.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">To be clear, I am not saying that ETH is necessarily a security because of its proof model, but regulators do talk about staking in the context of dividends which if one feature of what securities laws call a &#8220;common enterprise&#8221;. There are other factors in the Howey test too.<\/p>\n<p>\u2014 Gabor Gurbacs (@gaborgurbacs) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/gaborgurbacs\/status\/1570508284196687874?ref_src=twsrc%5Etfw\">September 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nGurbacs went on to clarify that regulators refer to rewards from staking as dividends, which is a feature of the Howey test.<\/p>\n<p><strong>Related: <\/strong><strong><em>Crypto developers should work with the SEC to find common ground<\/em><\/strong><\/p>\n<p>The Howey Test refers to a Supreme Court case in 1946 where the court established whether a transaction qualifies as an investment contract. If it does, then it would be considered a security and is covered by the Securities Act of 1933.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ether-staking-could-trigger-securities-laws-gensler\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ether staking could trigger securities laws \u2014 Gensler &#8220; Ethereum\u2019s upgrade to proof-of-stake may have placed the cryptocurrency back in the crosshairs of the Securities and Exchange Commission (SEC). Speaking to reporters after\u00a0the Senate Banking Committee on Sept. 15, SEC chairman Gary Gensler reportedly said that\u00a0cryptocurrencies and intermediaries that allow holders to \u201cstake\u201d their&#8230;<\/p>\n","protected":false},"author":1,"featured_media":493433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvY2E2YzgzMmUtNjk3Zi00ODg2LWIxNGQtNTM0ZWY2MTQxMjIwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75422,74891,74876,74898,70934,72287],"class_list":["post-493432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cftc","tag-ethereum","tag-proof-of-stake","tag-sec","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/493432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=493432"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/493432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/493433"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=493432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=493432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=493432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}