This week we have seen another level of U.S SEC disrupting the crypto space on it's policies which considered Paxos issued stablecoin (BUSD) according to the SEC, BUSD isn't recognized as security as it fails to pass the Howey test which is used to determine whether an asset falls to be qualified as an investment contract for investors, well for U.S based citizens this means not every crypto out there is suitable for investment unless it's been approved by the U.S Security Exchange Commission (SEC). We did expect the entire crypto market to react to this new change although there was high trading outflow of BUSD from binance exchange which affected the price of $BNB.
Its hard to tell if the SEC are deliberately trying to disrupt crypto market or they are actually acting in the best interest of their investors while some have seen this moves as an irrational move to play mind games on crypto market.
What this could mean for ethereum
Kraken exchange was fine $30 million for its staking as a platform service, ethereum which is a staking based token might as well be a target for SEC as it does not consider staking as a varied means of investment making it an inconvenient atmosphere for ethereum holders this could perhaps flatten the price of ethereum if such anti-staking campaign continues from U.S SEC.
Will this affect proof-of-Stake token
Ethereum which has been a proof-of-Work protocol did migrate to proof-of-Stake in other to efficiently maximise use of power and improve it security and scaling speed with Ethereum Shanghai schedule coming up next month investors are considering what might be the fate of the second largest crypto by market capitalization as its protocol is built on staking consensus which also goes against SEC rule of investment will this entirely affect the price of ethereum or will they switch to its original proof of work to avert SEC policies?
Well we will see how this will unfolding in coming month.