SEC Chairman Gensler Reaffirms Stance on Proof-of-Stake Tokens as Securities
SEC Chairman Gary Gensler reemphasizes his belief that proof-of-stake tokens like ether could be considered securities, as the debate with CFTC Chairman Rostin Behnam and a recent lawsuit against crypto exchange KuCoin intensifies regulatory discussions.
SEC Chairman Gary Gensler has reiterated his stance that proof-of-stake tokens, including ether, may be considered securities under the Howey Test, which would place them under the SEC's regulatory purview. According to The Block, Gensler's comments followed a question about CFTC Chairman Rostin Behnam's claim that ether is a commodity and should be regulated by the CFTC.
Gensler emphasized that token operators should seek compliance with securities laws, given that investors anticipate returns from proof-of-stake tokens. He has previously claimed that the majority of cryptocurrencies are securities, with bitcoin being an exception as a commodity.
Gensler's view was recently supported by a lawsuit filed against crypto exchange KuCoin by the New York Attorney General's Office (NYAG). The suit alleges that KuCoin violated U.S. securities laws by offering tokens, including ether, that meet the security definition without proper registration. Although the debate between Gensler and Behnam continues, the NYAG suit is the first instance of a regulator arguing in court that ether is a security.
