SEC Chairman Gary Gensler recently reiterated that altcoin projects using PoS can be securities. These statements from the regulators could attract a new wave of investors to the numbered PoW tokens.
SEC chief wants altcoin projects using PoS to be regulated as securities
Gensler made new clarifications on the regulation of Proof-of-Stake (PoS) networks. He said that PoS coins like Ethereum can be considered securities. This is because they are marketed by their founders and generate revenue from unregistered sales. Gensler said at a public meeting of the SEC on Wednesday:
I would suggest that each of these token operators, who openly consult appropriate capabilities, try to adapt.
🗓️ Open Commission Meeting 🗓️
Tomorrow, March 15th, at 10am ET we will have an @SECGov open meeting to discuss:
📜Proposed changes to Regulation S-P
📜A Proposed Cybersecurity Risk Management Rule
📜Proposed changes to Regulation SCI— Gary Gensler (@GaryGensler) March 14, 2023
ETHW could attract a new wave of investors
The developers behind Ethereum Proof-of-Work (PoW) recently shared proposals for the creation of the All-in-One Ecosystem DAO-EthereumPoW.
Since the beginning of the PoW project, NFTs and DeFi protocols have appeared in the ecosystem. Through these projects, PoW developers witnessed the potential in the EthereumPoW ecosystem.
🟩 Proposal: EthereumPoW One — An All-in-One Ecosystem DAO
Since the inception of EthereumPoW, some excellent NFT projects have emerged in the EthereumPoW ecosystem. Through these projects, we have witnessed the enormous potential of EthereumPoW. Nevertheless, the overall… pic.twitter.com/wWtNmXliNA
— EthereumPoW (ETHW) Official (@EthereumPoW) March 17, 2023
The team behind ETHW proposes the establishment of the DAO to encourage developers, projects and investors to participate in the development of the EthereumPoW ecosystem. Amid growing pressure from regulators for PoS altcoin projects and a surge in network development activity, ETHW is welcoming new investors despite using an old blockchain.
ETHW delivers double-digit earnings on a weekly scale
ETHW, Ethereum’s PoW token, is gaining popularity among investors. ETHW has gained 4% since March 16 and has gained 11% compared to last week. The US regulator’s stance on PoS tokens and Ethereum is among the drivers of rising market share and demand for ETHW.
KuCoin lawsuit expands pressure on altcoin market
In a development that has helped ETHW gain traction again, New York attorney general Letitia James has sued KuCoin for failing to register with the government before allowing investors, as part of regulations, to buy and sell cryptocurrencies on its platform. As Kriptokoin.com, we have included the details in this article.
The Attorney General said that KuCoin allows investors to buy/sell with popular cryptocurrencies such as ETH, LUNA and TerraUSD, and he is one of the first cases by a regulator calling ETH a security.
New York sues KuCoin, expands cryptocurrency crackdown https://t.co/SuAPukdeiL pic.twitter.com/5qcHtsyHph
— Reuters (@Reuters) March 10, 2023
Gensler said that while Bitcoin is a commodity, he wants full jurisdiction over his control over any other cryptocurrency, including Ethereum. The SEC Chairman claimed that the “vast majority” of the thousands of cryptocurrencies available are securities. An important turning point in this regard will be the SEC and Ripple lawsuit, which is expected to be concluded within the year.
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