SEC assumes that bet confirmation coins may be securities
2023.03.15 19:24
SEC assumes that bet confirmation coins may be securities
By Kristina Sobol
Budrigannews.com – Gary Gensler, the chairman of the Securities and Exchange Commission (SEC) in the United States, has once more suggested that proof-of-stake coins might be securities. On March 15, following a meeting of the commission on cybersecurity issues, he offered his perspective.
At a meeting of the Senate Agricultural Committee last week, Gensler was questioned by reporters about his response to statements made by Rostin Behnam, chair of the Commodity Futures Trading Commission, that he believed stablecoin and Ether (ETH) were “going to be commodities.” Gensler answered, as detailed in The Block:
“The investing public is investing anticipating a return, anticipating something on these tokens, whether they are proof-of-stake tokens, where they are also looking to get returns on those proof-of-stake tokens and getting returns of 2%, 4%, or 18%,”
He went on to say, “I would just suggest that each of these token operators […] seek to come into compliance, and the same with the intermediaries.” “Whatever they’re promoting and putting into a protocol, and locking up their tokens in a protocol, a protocol that’s often a small group of entrepreneurs and developers are developing,” he said. “Whatever they’re locking up their tokens in a protocol.”
Gensler has previously expressed his opinion regarding proof-of-stake coins. In September, after the Ethereum Consolidation, Gensler said proof-of-stake coin holders were individuals from “the contributing public expecting benefits in view of the endeavors of others.”
Open Commission Meeting ️
Tomorrow, March 15th, at 10am ET we will have an @SECGov open meeting to discuss:
Proposed changes to Regulation S-P
A Proposed Cybersecurity Risk Management Rule
Proposed changes to Regulation SCI
Staking is “another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others,” Gensler stated to a Senate Banking Committee later that month.
In U.S. law, securities are identified using the 1946 Howey test.
On February 9, the Securities and Exchange Commission (SEC) also ordered cryptocurrency exchange Kraken to cease offering staking services and pay a $30 million settlement. This sparked speculation that the SEC was preparing a new round of enforcement actions against the cryptocurrency sector. Gensler said at that point, “to offer marking, we’re nonpartisan. Register because investors require that information.
