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Ether’s New ‘Staking’ Model Could Draw SEC Attention (wsj.com)
20 points by mfiguiere on Sept 16, 2022 | hide | past | favorite | 3 comments


> Known as the Howey test, it examines whether investors expect to earn a return from the work of third parties.

Seems obvious that anything outside of a stable coin fits this. No one ever bought Ether expecting it to fall or stay at its current value, and an argument that it used because of its usefulness as an everyday currency should get laughed out of court.


This doesn't apply to staking validators - validators earn a payment for doing useful work by validating transactions are performed correctly. They're not expecting to benefit from the work of others.


All cryptocurrencies, not just ones you can stake, should be seen by courts as securities. I think regulation could do crypto a lot of good.




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