The staking of proof-of-stake poS is a type of consensus algorithm that rewards validators according to the amount of crypto they have staked. cryptocurrencies like Ethereum could lead to a securities definition, warned SEC Chairman Gary Gensler.
- The Merge attracts the attention of US regulators.
- Ether and PoS coins could be considered securities.
- Commodities or securities, the eternal discussion.
It seems that “The Merge“the update of Ethereum a decentralized open-source blockchain with smart contracts functionality. which saw the said blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. evolve to Proof of Stake (PoS), has attracted the attention of US regulators.
A form ofThe Wall Street Journalsuggests that the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) could take a closer look at regulating proof-of-stake cryptocurrencies and classifying them as ‘securities’.
SEC Chairman Gary Gensler said on Thursday that the SEC’s gambling activity ( staking participation in a proof-of-stake (PoS) system to put your tokens in to serve as a validator to the blockchain and receive rewards. ) with PoS cryptocurrencies to earn rewards could lead to the classification of securities . He cautioned that such assets could take on attributes similar to those of an investment contract, which would place proof-of-participation currencies under his agency’s oversight.
According to the report, which was picked up byThe Block , CoinDesk and other news media, the president of the government agency mentioned the Howey test, a tool regulators use to determine whether an asset is a security, when he spoke to reporters after a Senate hearing.
“ From a currency currency is a medium of exchange that defines value. perspective…that’s another indication that, according to Howey’s test, the investing public anticipates gains gains refer to an increase in value or profit. based on the efforts of others “he said, as quoted byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain..
Attention PoS. Values or commodities
Although Gensler indicated that he was not referring to any specific currency, he suggests that cryptocurrencies like Ethereum (ETH), the second largest digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset by market an area or arena, online or offline, in which commercial dealings are conducted. capitalization, could face greater scrutiny in the near future.
The director’s remarks came hours after he Ethereum will activate one of its biggest updates to date. Previously based proof-of-work poW is a type of consensus algorithm that rewards validators according to the amount of computational power they have expended. (PoW) mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. that consumes a lot of energy, Ethereum se ” merged ” a PoS that will allow validators to verify transactions and create new blocks in a process that involves doing staking .
The SEC chairman, who had earlier classified ETH as a commodity, felt that the activity of betting coins or making staking “ look very much like, with a few labeling changes, the loans that are “ as quoted by Cointelegraph .
The classification of cryptocurrencies has been a topic of discussion for some time now among U.S. regulators. Most recently, the spat between the SEC and the Commodity Futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Trading Commission (CFTC) over authority to oversee the crypto space seems to have stoked these discussions.
- New US bill would define Bitcoin as a ‘digital commodity’ and give the CFTC the crypto-regulatory reigns
If securities are considered securities, the SEC, which has taken a tough approach to the digital asset sector, would be the regulatory agency for exchanges, vendors and other cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. companies. By contrast, a classification of that asset class as commodities places authority with the CTFC.
Federal regulators had agreed thatEther the form of payment used in the operation of the distribution application platform, Ethereum.y Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. were practically the only two cryptocurrencies that could be defined as commodities . Gensler had agreed with that classification, although he has reiterated on several occasions that most digital currencies, with the exception of Bitcoin , should be classified as securities and therefore fall under its jurisdiction.
- SEC probes Coinbase is an American company that operates a cryptocurrency exchange platform. over its cryptocurrency listing the addition of an asset or an asset pair to an exchange. to see if it includes securities
- SEC Chairman Gary Gensler gets a barrage of criticism for his comments on crypto-regulation
- SEC enforcement director says more action coming against companies in the crypto space
Article by Hannah Estefania Perez / DiarioBitcoin
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