Crypto Analyzer

Unpopular Opinion: The SEC is Right on Staked ETH and Stablecoins being Securities

The regulations that govern cryptocurrency are constantly changing. Recent news has caused a stir within the crypto community when the SEC (Securities and Exchange Commission), declared both staked ETH and stabilizecoins securities. But is the SEC really that far from the truth?

We will explore why the SEC considers stablecoins and staked ETH securities in this article.

Staked Ethereum, also known by Liquid Staking Deposit Receipts (LSDR), is an investment in which people deposit their ETH into a common protocol. This allows them to earn mining rewards. This is a process where someone or something takes custody of your ETH. They pay the gas and perform the calculations. It’s a financial investment.

Similar to bearer bonds, stablecoins, such as USDC and BUSD, can be used digitally. They have been around for centuries. The bearer bonds were pieces made of paper that could be used to redeem real money for the owner. This same principle applies to stablecoins. If you have them in your wallet, you can ask the issuing entity (such Circle) for the real money equivalent.

It doesn’t matter if it’s staked Ethereum or stablecoins; they are financial investments. Someone takes custody of your assets and performs a service in return for mining rewards, or maintaining the coin’s value. It is logical for the SEC that they be considered securities.

The decision to invest in stablecoins or staked ETH is ultimately yours. However, it’s important to take into account the regulatory aspects and do your research before you make any investment. Doge is a good option if you are looking for a safer bet. Do you really want to be the regulator of the “doggie coins”?

It is essential to keep up with the latest developments in cryptocurrency. Although the SEC’s view on staked Ethereum and stablecoins might not be widely accepted, it is definitely worth looking into.