Ethereum has been seeing increased regulatory scrutiny in recent months. This comes following the network’s move to a proof of stake mechanism and the introduction of staking to the others. As sanctions have been levied against protocols such as Tornado Cash, it is becoming increasingly possible that regulatory bodies may turn their focus to Ethereum. Now, it seems the parameters for determining whose purview ETH falls under are being hashed out. Ethereum Might Be A Security Previously, the Securities and Exchanges Commission boss Gary Gensler had said that the top two cryptocurrencies, Bitcoin and Ethereum, did not qualify as securities. But this was when both of these networks were still firmly operating under a proof of work mechanism. Related Reading: Why The Shiba Inu Price Could See Some Major Upside This Week With Ethereum’s move to proof of stake, the SEC is beginning to backtrack on the previous comments that Ethereum did not qualify as a security. It reasons that since there is now the availability of staking on the network, investors are currently “anticipating profits based on the efforts of others.” This gives it pause to say that the digital asset might now qualify as a security. It also follows the SEC boss’ view that most cryptocurrencies are currently operating as securities. Meanwhile, the impact of Ethereum being classified as a security by the regulatory body has a lot of implications. The most prominent of...
