US CFTC Chairman: After Ethereum 2.0 to PoS, ETH may be considered "securities"

According to the bitcoinexchangeguide, Heath Tarbert, chairman of the US Commodity Futures Trading Commission (CFTC), recently talked about how regulators have labeled tokens using the Proof of Entitlement (PoS) consensus algorithm as "securities."

CFTC Chairman Heath Tarbert

According to him, based on certain factors, the mortgaged token can be considered a security. The CFTC has previously confirmed that in the current situation, Ethereum is not a security but a commodity. However, this may change with the upcoming ETH 2.0 upgrade.

• Thinking after the Wuzhen Conference: The future ten years of the blockchain in my eyes
• Blockchain is for information security, is armor or weakness
• Block value observation of Wuzhen 2019 block: distributed digital identity, Web3.0, MOV, NDN

Just last month, Heath Tarbert, who took over as chairman of the CFTC in July, said at an event in New York that he considered ETH to be a commodity and therefore under the jurisdiction of the CFTC. He also expects CFTC to allow Ethereum futures to trade on the US market in the near future.

Since ETH 2.0 will use Staking, the benefits users receive from the network are perpetual, which may violate the Howey test, which is often used to determine if something can be considered a security.

Tarbert affirmed that, by nature, mining is a decentralized way to obtain cryptocurrencies, so the definition of Ethereum may change soon after giving up mining. Staking may require less energy consumption, but it does not seem to be a panacea that some people think, especially if it causes trouble for regulators.

The CFTC chairman said that the entity is carefully considering the development of Ethereum, a popular blockchain network, and said that the United States should lead the global cryptocurrency rule. This will help create an environment that is free to develop.

He also defends regulation by using a wide range of principles rather than elaborate rules, because he believes that strict regulations may not be conducive to innovation. This approach is in stark contrast to the Securities and Exchange Commission (SEC), the SEC's enforcement of the law. Very strict, and even arguably very "conservative", this can be seen from repeated rejections of the Bitcoin ETF application.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!