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The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) show no signs of cooling down their argument on the definition of crypto. In his latest response, the SEC Chair Gary Gensler reiterated that all the tokens using staking protocols, which include Ether, could be considered securities under the US law.
After a commission vote on Wednesday, Gensler was asked by journalists about his thoughts on CFTC Chair Rostin Behnam's statement that Ether is a commodity. He answered that, as token holders expected returns from staking, the proof-of-stake tokens should be considered securities.
"The investing public is investing anticipating a return, anticipating something on these tokens, whether they're proof-of-stake tokens, where they're also looking to get returns on those proof-of-stake tokens and getting 2%, 4%, 18% returns. Whatever they're promoting and putting into a protocol, and locking up their tokens in a protocol, a protocol that's often a small group of entrepreneurs and developers are developing, I would just suggest that each of these token operators ... seek to come into compliance, and the same with the intermediaries."
There have been differences between the SEC and the CTFC over which agency should be in charge of regulating the crypto markets. Previously, both Gensler and Behnam declared their views on crypto like Ether on different occasions. After Gensler said that all cryptocurrencies were securities except for Bitcoin, Behnam gave his response last week that he saw Ether and stablecoins as commodities. Also last week, New York Attorney General Letitia James showed her support for Gensler in the lawsuit against crypto exchange KuCoin, where she stated that Ether was an unregistered security.
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