SEC: Everything Apart from Bitcoin is a Security

The Chair of the Securities and Exchange Commission (SEC), Gary Gensler, recently revealed that the lack of clear crypto regulations in the United States is causing most digital assets, excluding Bitcoin, to be considered unregistered securities. Kraken cryptocurrency exchange’s staking program has already been classified as such, which means proof-of-stake (PoS) secured blockchains like Ethereum, Cardano, and Solana may face difficulties ahead.

In a recent interview with New York Magazine, Gensler (whom we will be referring to as Golden Gary) mentioned that, with the exception of Bitcoin, all cryptocurrencies in circulation are usually established by a group of entrepreneurs who tend to base their headquarters in offshore tax havens and may also have a foundation. Golden Gary also asserts that the teams behind these cryptocurrencies employ complicated and opaque methods to market their tokens and attract investors.

“They might drop their tokens overseas at first and contend or pretend that it’s going to take six months before they come back to the U.S.,” Securities Gary posited. “But at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.”

Back in July 2015, prior to Ethereum’s launch, the network conducted an initial coin…