Gensler Suggested that Proof-of-stake Coins Are Securities

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Last Updated on March 16, 2023 by Bitfinsider

On Wednesday, Stocks and Exchange Commission Chair Gary Gensler told reporters that coins that use staking procedures could be deemed securities under US law.

“The buying public is expecting a return, anticipating something on these tokens, whether they’re proof-of-stake tokens, where they’re also looking for returns on those proof-of-stake tokens and receiving 2%, 4%, 18% returns,” Gensler explained. “Whatever they’re pushing and placing into a protocol, and sealing up their tokens in a protocol, a protocol that’s often developed by a small group of entrepreneurs and developers, I would simply recommend that each of these token owners… pursue conformance, and the same with the middlemen.”

Gensler made the comments in response to a question about his reaction to statements made last week by Commodity Futures Trading Commission Chair Rostin Behnam, who repeated his own and his agency’s view that ether is a commodity.

Gensler spoke to reporters following a decision by the commission on three proposed regulations aimed at strengthening cybersecurity, customer privacy, and system standards for the securities industry, including at some firms engaged in digital assets.

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