The U.S. SEC has not officially classified Ethereum (ETH) as a security, but speculation arises from its proof-of-stake transition, suggesting it may meet the Howey Test criteria: investment of money, common enterprise, and expectation of profits from others’ efforts. SEC Chair Gary Gensler has hinted that staking rewards align with securities, though no formal ruling exists. In 2018, William Hinman stated ETH was not a security due to its decentralized nature, but recent investigations into the Ethereum Foundation indicate renewed scrutiny. Critics argue the SEC’s stance lacks clarity, as ETH’s utility and decentralization resemble commodities like Bitcoin. The legal basis remains debated, with potential overreach risking innovation, while courts may challenge the SEC’s expansive interpretation. 0 reply
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