The Securities and Exchange Commission (SEC) has recently started to suggest that Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS) alters its nature and turns it into a security, specifically an investment contract. This insinuation has now progressed from mere inference to concrete action, with several legal measures being pursued. Gary Gensler contends that cryptocurrencies that enable staking also fulfill the requirements of the Howey test, thereby warranting their regulation and oversight. Nevertheless, the circumstances differ for PoW assets such as Litecoin (LTC), Dogecoin (DOGE), and Bitcoin (BTC).
