Ether Staking Could Trigger a Succession of Securities Laws

SEC Chairman Gary Gensler said proof-of-stake crypto could be subject to securities laws.

It's safe to assume that Vitalik Buterin's brainchild's move to Proof-of-stake will put the second largest cryptocurrency in the SEC's crosshairs.

SEC Chairman Gary Gensler reportedly said that cryptocurrencies and intermediaries that allow holders to stake their cryptocurrencies could identify them as securities under the Howey test, The Wall Street Journal reported. 

"From a coin perspective [...] this is another indication that the investing public expects returns based on the efforts of others under the Howey test," the WSJ quoted Gensler as saying. 

The SEC is keeping a close eye on cryptocurrency, especially those coins it believes are securities. The regulator continues to pursue a case against Ripple Labs in connection with releasing the XRP token.