Gary Gensler, the chairman of the SEC, hinted on Wednesday that proof-of-stake coins may qualify as securities under US law. Profits made by token holders via staking, in Gensler’s opinion, show that the tokens are securities and need to be registered under U.S. law.
Whether they are proof-of-stake tokens, where investors are also expecting for returns and receiving returns, Gensler said that the investing public is looking for a return and anticipating something on these tokens.
While Gensler has acknowledged that proof-of-stake techniques may be governed by US securities laws, he elaborated on this during his speech on Wednesday. In addition, the SEC recently concluded its first enforcement action using staking as a service and reached a settlement with Kraken last month.
Gensler made the comments in response to questions from Rostin Behnam, chair of the Commodities Futures Trading Commission, who maintained his own stance. Rostin recently said that Ethereum and stablecoins are commodities.
Three new regulations were put out as a result of a commission decision to strengthen cybersecurity, customer privacy, and system requirements for the securities business, notably at those companies dealing with digital assets.
Compiled by Coinbold