Mar 16, 2023
SEC Chair Gensler Suggests Proof-of-Stake Coins May be Securities
The United States Securities and Exchange Commission (SEC) Chair Gary Gensler has raised concern that proof-of-stake coins may be deemed securities. This opinion was shared on March 15th, during a commission meeting on cybersecurity issues.
Gensler was asked to respond to statements made by Commodity Futures Trading Commission Chair Rostin Behnam, who suggested that stablecoins and Ether (ETH) were “going to be commodities” in a Senate Agricultural Committee meeting.
Gensler replied that investors are expecting a return on their tokens, with some investors getting returns of up to 18%. He suggested that token operators should seek to comply with the SEC’s regulations, as well as intermediaries.
This is not the first time Gensler has voiced his opinion on proof-of-stake coins. In September, he said that investors were expecting a profit based on the efforts of others.
This view has been supported by the Howey test, which is used in U.S. law to determine if an asset is a security.
The SEC has also taken action against cryptocurrency exchanges, such as Kraken, who have offered staking services. Kraken was forced to discontinue its staking service and pay a $30 million settlement on Feb. 9. Gensler said that if exchanges want to offer staking, they should register with the SEC and provide disclosure to investors.
The SEC’s stance on proof-of-stake coins has caused concern in the crypto and web3 space. Companies are now looking for ways to promote and sell their NFTs without running afoul of the SEC.
NFT marketing is a growing trend, with companies using social media platforms, such as Twitter, to promote their tokens. Companies are also turning to NFT marketing agencies to help them reach potential buyers. These agencies can help with setting up campaigns, managing NFT sales, and providing advice on the best ways to promote NFTs.
The SEC’s stance on proof-of-stake coins has also led to an increase in the number of web3 agencies. These agencies specialize in helping companies navigate the web3 space, and they can provide advice on how to comply with the SEC’s regulations.
As the SEC continues to take a closer look at the crypto and web3 space, companies will need to be mindful of the regulations and ensure they are compliant. With the right guidance and advice, companies can successfully promote and sell their NFTs without running afoul of the SEC’s regulations.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.