After a long delay, on Thursday, September 15, the ethereum
ethereum Blockchain NetworkTechnology 
Followers : 0 View profile network was finally transformed into proof-of-stake (PoS) from proof-of-work (PoW). This transition is expected to improve the network’s stability and reduce energy usage by 99.95%.
While the ETH holders are rejoicing with the merger, the US regulator, Securities Exchange, and Commission (SEC) are now viewing ETH as security. Right after the merge was completed, gary gensler
gary gensler chairman at US Securities and Exchange Commision Gary Gensler is an enthusiastic leader and the current chair of the U.S. Securities and Exchange Commission (SEC). He has the extreme experience that spans wall street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. He announced several initiatives to enhance investor protections in the $2 trillion cryptocurrency market. He previously led the Biden-Harris transition’s federal reserve, Banking, and securities regulation agency review team.
He was awarded Treasury’s highest honor, the Alexander Hamilton Award, and also was a recipient of the 2014 Frankel Fiduciary Prize. He was born on October 18, 1957, into a Jewish family, in Baltimore, Maryland. Graduated from the University of Pennsylvania, earning a Master’s degree in Business Administration. Additionally, he is also a professor at the MIT Sloan School of management. He has served in various governmental roles since the 1990s, such as the treasury department, Sarbanes-Oxley, CFTC, Swaps, Enforcement, Libor investigation, Maryland Financial Consumer Protection Commission, Securities, and Exchange Commission.
Gary Gensler will probably keep on filling in as seat of the SEC until 2026, accepting his renunciation. He has expressed his desires to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages. A few officials as well as his kindred SEC magistrates have scrutinized Gensler for not giving adequate administrative direction on crypto, possibly prompting a standoff between Congress and the association.
The SEC, CFTC, and Financial Crimes Enforcement Network handle advanced resource guidelines in the U.S., however, each with various jurisdictional cases, bringing about an interwoven methodology that crypto firms should explore to work legitimately. Whether 2022 will see a more clear way for organizations in the crypto space is questionable, yet the cosmetics of the SEC’s initiative will fundamentally change following the takeoff of chief Elad Roisman in the first month of the year. Chief Allison Lee’s term is likewise set to terminate in June 2022. Chairman Followers : 0 View profile , SEC Chairman claimed that all the cryptocurrencies and platforms that give an opportunity for its holders to stake their holdings will have to pass the Howey test used by judiciaries to know if the asset is secure. The Howey Test makes an effort to investigate whether the market participants are expecting any returns from the third party.
As per the law that was passed in the 1930s, the one who issues securities, the assets that involve stocks and bonds, should submit a disclosure to the SEC. Also the exchange platforms along with brokers who allow the trading of securities must adhere to the rules meant to protect investors.
Ethereum To Register Under SEC
If the rules aren’t followed, the exchanges and brokers will have to encounter strict liabilities.
Staking is a way through which the crypto networks verify the transactions which allow investors to hold on to their currencies for a time so that they get some returns. The networks include Solana, Cardano, and now Ethereum too.
Even in the past, the SEC has urged that those platforms that are allowing crypto-lending products are required to register with them and when BlockFi Lending went against the claim, they were forced to pay $100 million.
The agriculture committee has recently proposed a crypto bill that especially mentions that Bitcoin and Ethereum are digital commodities and not securities. Exchanges such as coinbase
coinbase [email protected] Centralised Exchange 
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On the other hand, the judiciary from Consumer-protection claims that the CFTC doesn’t hold the good experience and resources to understand small inventors. Now, the SEC is expected to either draft a disclosure frame or offer incentives for the organizations that make an effort to reduce energy consumption.