Previously, the boss of the Securities and Exchange Commission of the United States said that Bitcoin and Ethereum, the two major cryptocurrencies, did not qualify for securities. However, in recent months, Ethereum has been subject to more and more regulatory scrutiny. This happened after the network turned to the rights and interests proof mechanism and introduced rights and interests to others. The following is a detailed report on relevant content.

Ethereum may be a security

Previously, Gary Gensler, head of the Securities and Exchange Commission of the United States, said that Bitcoin and Ethereum, the top two cryptocurrencies, did not qualify for securities. But at that time, these two networks were still operating stably under the workload proof mechanism.

As Ethereum turned to proof of equity, the Securities and Exchange Commission of the United States began to review previous comments on Ethereum's lack of securities qualification. The reason is that investors are now "anticipating profits based on the efforts of others" because they can pledge on the Internet. This makes it pause to say that digital assets may now qualify as securities. It also follows the view of the boss of the SEC that most cryptocurrencies are currently operated as securities.

At the same time, the impact of Ethereum being classified as securities by regulators also has many impacts. Most notably, there are more Ethereum nodes operating in the United States than in any other country, which means that most transactions will fall within the scope of the SEC.

However, since these assets have not yet been classified as securities, there are other guesses that they can be classified. CFTC has previously been asked to supervise the encryption industry. Rostin Behnam, the chairman, said that digital tokens are commodities and CFTC should be able to supervise them.

Will Ethereum stand up to scrutiny?

Ethereum, which is regulated by these regulators, can take many ways. At present, it is expected that regulators will soon make a final classification of digital assets, and then take measures to supervise them. However, prices may be affected.

The sanctions against Tornado Cash, the cryptocurrency mixer, have put Ethereum investors at a disadvantage. Increased regulation of Ethereum may reduce the price of cryptocurrencies. Ethereum has been difficult to maintain above 1000 dollars, and any regulatory action may push its price below 1000 dollars.

This move against Ethereum will also greatly affect the decentralized finance (DeFi) and the rest of the NFT market, triggering a rapid decline in the value of the entire space. Ultimately, the winner will be assets like Bitcoin, which are truly decentralized and will become a safe haven for crypto investors.

ending

The above contents are all reports on the rise of Ethereum to withstand the impact of regulatory review. In addition, with the sanctions against Tornado Cash and other agreements, it is more and more likely that regulators will turn their attention to Ethereum. Now, it seems that the parameters that determine the permissions of Ethereum are under discussion.