Gary Ggensler: All PoS tokens are securities

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US Securities and Exchange Commission (SEC) Chairman Gary Gensler suggestedthat Proof-of-Stake (PoS) tokens may be considered securities under US law.

“The public is investing expecting a return, expecting something from these tokens, be it proof-of-stake tokens, where they also hope to generate income from these proof-of-stake tokens and get 2%, 4%, 18% returns,” the head said. commissions.
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According to the head of the regulator, these types of protocols are usually developed by a small group of entrepreneurs and developers. Gensler believes that all these traders should abide by the rules. The same goes for brokers.

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“Whatever they promote and put on the protocol and lock their tokens into the protocol, a protocol that is often developed by a small group of entrepreneurs and developers, I would suggest that each of these token operators consult,” Gensler noted.

Against the backdrop of all current events, crypto market participants have been subjected to increased scrutiny by regulatory authorities. Some firms are also avoiding securities labeling because it requires more stringent investor protection requirements that may not currently be compatible with the asset class.

The biggest debate around the regulator’s recent stance is whether Ethereum (ETH) is classified as a security. Gensler himself has hinted that he thinks Ethereum can be classified as a security. In his opinion, cryptocurrencies other than bitcoin are usually created by a group of entrepreneurs who use various non-transparent mechanisms to promote their tokens and attract investors.

The SEC is not the only regulator that wants to recognize cryptocurrencies as securities. Last week, New York Attorney General Letitia James sued crypto exchange KuCoin for offering staking products that allowed for passive income.

Source: Cryptocurrency

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