U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler warned the Ethereum community that staking ETH after the network merger could be subject to securities laws.
Gary Gensler stated that the software update and the merger of Ethereum could turn the second largest cryptocurrency by capitalization into a security. In accordance with the current Securities Law, crypto companies that provide services for staking crypto assets are required to pass the Howey test for compliance.
Recall that the Howey test is used by the courts to determine whether a transaction is an investment agreement and, accordingly, whether it falls under the jurisdiction of the SEC with subsequent mandatory registration.
The final decision rests with the courts, but the SEC is of the opinion that cryptoassets that allow holders to earn passive income have the characteristics of uncertificated securities under the Securities Act of 1933 and the Securities Exchange Act of 1934.
In early September, Gensler spoke at a summit in New York where he once again called on crypto companies to register with the SEC, whether they be digital asset trading platforms, crypto brokers or crypto lending services.
Source: Bits
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