Following the successful completion of the Ethereum Merge on Thursday, the SEC chairman commented on staked assets. He suggested that assets like Ethereum (ETH) would be scrutinized for their ability to facilitate staking. However, Gensler did not clearly link his statements to Ethereum's staking mechanism.
Until recently, the SEC, led by Gensler, was emphatic that Bitcoin and Ethereum be treated as securities. The SEC just announced its stance on cryptocurrency regulation earlier in the month. Gary Gensler reportedly backed the concept of the CFTC overseeing crypto exchanges operating in the nation. Even court matters are being overhauled in what looks to be a clean-up of the unregulated crypto industry.
Federal Prosecutors Unite To Fight Crypto Crimes
The Justice Department decided to unite prosecutors from across the country in order to better combat cryptocurrency-related crimes. According to a local media outlet, around 150 federal prosecutors across the country came together to support law enforcement efforts. According to a department official,
“The Digital Asset Coordinators Network was created to designate subject-matter experts at U.S. attorney's offices to handle the extensive technical and legal complexities posed by cryptocurrency cases.”
Gary Gensler – Crypto Staking And The Case Of ETH
Gensler made the remarks shortly after Ethereum had officially completed The Merge - the transition to proof-of-stake consensus. He stated that crypto assets that allow staking will have to pass a test to determine if they are securities or not. Previously, the SEC chairman was fine with Ethereum being a commodity.
“Crypto assets and intermediaries that allow users to stake must pass the Howey Test to establish if the asset is a security or not.”
Howey Test: It is an eligibility criterion for determining whether a transaction constitutes an investment contract.
Read also: World Bank Issues Warning About Coming Recession, How To Protect Crypto?
