Cryptocurrency staking has been gaining traction over the past few years due to the attractive returns offered. Smart money is headed specifically for the leading altcoin Ethereum and some other cryptocurrencies. Here are the details…
4 altcoins top the list of most staked coins
With the Merge update, the Ethereum Blockchain has recently transitioned to a Proof-of-Stake network. However, the staking facility for ETH on Ethereum has already existed since the launch of the Ethereum Beacon Chain last year. In a very short period of time, ETH became the most staked coin on the market – surpassing all other PoS cryptocurrencies.
According to StakingRewards data, the total staked market cap is currently $94.92 billion. Ethereum (ETH) tops the charts with $18.8 billion in ETH staking. Solana (SOL) with $12.4 billion and Cardano (ADA) with $10.9 billion are in third place. Finally, BNB comes.
Gary Gensler: PoS can pass Howey test
However, the US Securities and Exchange Commission (SEC) has its eyes on the crypto staking market. Shortly after the Ethereum Merge last week, SEC chairman Gary Gensler hinted that securities laws might apply to Ethereum as well. Gensler believes that their PoS assets can pass the Howey test. Gensler used the following statements:
In terms of coin… this is another indication, under the Howey test, that the investing public expects profits based on the efforts of others. One of the main indicators of the Howey test is that the investor expects profits based on the efforts of others.
Head of Ava Labs: Staking pulls regulation
The SEC Chair isn’t the only one to believe that cryptocurrency could be regulated. John Wu, President of Ava Labs, recently stated that “staking” is a “different structure” that traditional finance does not have. Speaking to Bloomberg on Tuesday, John Wu said that some cryptocurrencies are likely securities. Ava Labs, as we report as cryptokoin.com, is the parent organization behind the popular open-source Avalanche protocol for hosting decentralized applications. Wu added during the interview:
You kind of work hard. You are making a guarantee to earn a return. So it’s a hybrid system, so maybe there should be income for the business you contribute rather than a security.
That being said, the regulatory focus on staking has intensified recently after Ethereum’s Merge upgrade. Hence, any regulation on this issue will affect all cryptocurrencies operating on the Proof-of-Stake model. Cryptocurrency staking has been popular among the crypto community. Any SEC action could result in a massive drop in all PoS tokens.
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