U.S. SEC Chairman: Under U.S. law, proof-of-stake tokens should be considered securities

2023-03-16 08:12:57

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ChainCatcher news, according to The Block, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler stated to reporters on Wednesday that, under U.S. law, proof-of-stake tokens should be considered securities.

Gensler believes that the returns earned by token holders from staking indicate that these tokens are securities and need to be registered under U.S. law. Gensler made these comments in response to a question about his reaction to last week's statement by Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, who stated that Ether is a commodity.

Gensler has previously indicated that proof-of-stake protocols may fall under U.S. securities laws. Additionally, New York Attorney General Letitia James stated in a lawsuit against the cryptocurrency company KuCoin that Ether is an unregistered security, and that the founders, including Vitalik Buterin, violated U.S. securities laws. (source link)

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