Listen, imagine, the U.S. Securities and Exchange Commission (SEC), the most important financial regulator that usually strictly monitors the markets, suddenly caused a wave of criticism because of its new position on cryptostaking. This is when holders of cryptocurrencies such as Ethereum "freeze" their coins on the network and receive a reward for this — as a percentage for a bank deposit, only on the blockchain.
On May 29, the SEC issued new guidance stating that some staking programs may not be considered securities. In other words, not all cryptocurrency projects are required to register with the regulator, as it was before. At first glance, this is a step towards the crypto industry, but it's not that simple.
Former SEC official John Reed Stark immediately criticized the decision, saying it contradicted court rulings in cases against Binance and Coinbase. Previously, the courts recognized that staking products are securities after all. And now the SEC seems to be saying the opposite — it looks like a rejection of its own principles and judicial arguments. Stark even said that "this is how the SEC is dying—in full view of everyone."
Other officials, including Commissioner Caroline Crenshaw, are also at a loss. She stated bluntly: This does not comply with either the law or the practice of the courts. She worries that the SEC is changing its approach to cryptocurrencies on the go, "until it works out." For example, in some cases, Ethereum is considered a security, in others it is not. How is it possible to understand what is possible and what is not?
By the way, the SEC recently dropped several lawsuits against crypto exchanges and even began holding round tables with market participants. Maybe they really want to clean up the mess? But so far it looks like they're just retreating under pressure.
Commissioner Hester Pierce, in response to criticism, said that it is not the token itself that matters, but how it is sold. That is, the token may be "not a security," but a deal with it is already a yes. That's not very clear either, is it?
So I have a question for you, friend:
Do you think the SEC really wants to adapt to new technologies, or is it just confused and no longer knows how to act in the world of cryptocurrencies?
#SEC #CryptoNewss #CryptoStaking #crypto