Ethereum At Risk Of Passing Howey Test Post Merge? 

SEC Chairman Says Ethereum Could Pass The Howey Test Post Merge

SEC Chairman Gary Gensler has said that Ethereum’s shift to Proof of Stake could make ETH security.

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The Howey test determines if an asset qualifies as an “investment contract” and how it could be subject to federal security laws.

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SEC chair Gensler claimed that proof-of-stake cryptocurrencies could pass that test.

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Gensler said that under the howey test, the investing public is anticipating profits based on the efforts of others

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However, Gesnler did not mention any other cryptocurrencies that use Proof-of-Stake mechanisms that could also be classified as security according to his argument. .

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SEC chair had earlier today said during the hearing that he thinks all cryptocurrencies are securities.

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Yesterday, in a historic event Ethereum successfully shifted from Proof-of-Work mechanism to Proof-of-Stake.

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