SEC Chairman Gary Gensler has suggested that proof-of-stake (PoS) tokens could be considered securities under US law.
He has said:
"The investing public is investing anticipating a return, anticipating something on these tokens, whether they're proof-of-stake tokens, where they're also looking to get returns on those proof-of-stake tokens and getting 2%, 4%, 18% returns."
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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 all these traders must comply with regulations. The same goes for brokers.
His comment came in response to a question from reporters about a recent statement by CFTC Chairman Rostin Behnam, who confirmed that he and his agency classify Ethereum as a commodity.
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Gensler hinted in February at the possibility of recognizing all cryptocurrencies, with the exception of Bitcoin, as securities. His stance has been criticized by industry lawyers.