Ethereum’s upgrade to proof-of-stake (PoS) may have placed the cryptocurrency back in the crosshairs of the Securities and Exchange Commission (SEC). “From the coin’s perspective […] that’s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others,” WSJ reported Gensler as saying. There are other factors in the Howey test too. — Gabor Gurbacs (@gaborgurbacs) September 15, 2022Gurbacs went on to clarify that regulators refer to rewards from staking as dividends, which is a feature of the Howey test. If it does, then it would be considered a security and is covered by the Securities Act of 1933.

Source: Wall Street Journal September 16, 2022 05:29 UTC