• SEC Chairman Gensler suggests that proof-of-stake tokens could be subject to the definition of securities under the Howey Test.
• This has implications for the ongoing crypto turf war between the SEC and CFTC regarding regulatory authority.
• Commissioner Christy Goldsmith Romero from US Commodity Futures Trading Commission encourages people to explore policy fallout from the 2022 market crash, CBDCs and more.
SEC Chairman Suggests Proof-Of-Stake Tokens Are Securities
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler is suggesting that tokens underpinned by a proof-of-stake consensus mechanism could meet the definition of securities under the Howey Test, thus bringing them under his agency’s regulatory authority. Speaking to reporters after a commission vote on Wednesday, Gensler said securities laws could be triggered because investors anticipate a return when they purchase such tokens.
Implications Of The Opinion For Crypto Regulatory Authority
Gensler had previously argued that ether might be a security after Ethereum’s transition to proof-of-stake last year, signaling his opinion on this matter again carries implications for a „turf war“ between the SEC and CFTC over which agency would have regulatory authority over certain types of digital assets.
Christy Goldsmith Romero On Policy Fallout From Market Crash And CBDCs
Commissioner Christy Goldsmith Romero from U.S .Commodity Futures Trading Commission encouraged people to explore policy fallout from the 2022 market crash as well as an advance of Central Bank Digital Currencies (CBDCs).
Previous Arguments On Ether Being A Security After Transition To Proof Of Stake
Last year, Gary Gensler argued that ether might be considered a security after Ethereum transitioned to proof of stake mining; this provided further evidence that his opinion on this matter has been consistent throughout time.
Encouraging People To Explore Policy Fallout From Market Crash And CBDCs
Christy Goldsmith Romero also noted how important it was for people to understand policy implications stemming from events like the 2022 market crash or advances in technologies like Central Bank Digital Currencies (CBDCs). She encouraged individuals interested in these topics to secure their seats at upcoming conferences discussing them in depth.