Gary Gensler Is Wrong About Proof-of-Stake Tokens

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Gary Gensler Is Wrong About Proof-of-Stake Tokens
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The Securities Exchange Commission Chair said the 'investing public' may expect a return from staking. Polymesh's Graeme Moore argues that doesn't make these cryptocurrencies securities.

U.S. Securities and Exchange Commission Chair Gary Gensler has long taken the position that the majority of crypto tokens should be treated as securities. In March 2023, Gensler stated:

This is a false or misleading position as proof-of-stake, or PoS, tokens are not securities – even if some PoS token holders purchase them as investments with the expectation of profit. Even if most token holders purchase PoS tokens due to an economic incentive, not every purchase made as an investment is an investment in a security. People often treat sneakers as investments, but this doesn’t make buying a pair of Yeezy’s automatically the same as buying a stock.

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