Ethereum is now the target of action by the Securities and Exchange Commission that extends well beyond the boundaries of the United States.
Are securities and exchange commission officials preparing to shut down Ethereum? It definitely seems plausible given the threatening rhetoric used by officials, notably SEC Commissioner Gary Gensler.
In September, the organisation embarked on an asymmetric encryption binge. First, during its yearly The SEC talks in a conference, representatives vowed to keep up enforcement efforts and asked market players to register their goods and services. To reduce conflicts of interest and improve investor protection, Gensler even recommended that cryptocurrency intermediaries split into different legal firms and record each of its roles, such as broker-dealer, exchange, custodial duties, etc.
Judgement On Ethereum By The Regulators:
The SEC’s Corporation Finance Division then said that it will be expanding its Exposure Review Program this autumn to include an Offices of Digital Currencies and also an Office of Industry services and Applications to help with the registration of players in the cryptocurrency market. Then, in witness statements prior to actually various Senate Committees regarding legislation that would revamp the regulation of cryptocurrencies, Gensler reaffirmed his conviction that almost all digital tokens are securities, tacitly condoning his position that such digital tokens and relevant middlemen should sign up with the SEC.
The SEC’s attacks on Ethereum, however, may have been the most seismic. This may reverse a years-long rapprochement that started when a prior SEC official said that ETH, together with BTC, wasn’t any security. Gensler suggested that Bitcoin and ethereum switch from proof-of-work to proof-of-stake (PoS) could have helped bring Ethereum underneath the SEC’s jurisdiction since by pinning coins, “the average investor [is] awaiting key business just on attempts of others,” according to his witness statements just before the Senate Banking Committee.