The SEC continues to insist that the vast majority of altcoins be considered securities. In the case of Ethereum, the fact that the network works with the mining mechanism was seen as the biggest factor in keeping the crypto asset out of securities. The end of post-merge mining could change the SEC's view of the second-largest cryptocurrency. Because now miners have been replaced by validators staking ETH.
In the new functioning mechanism of the Ethereum network, validators earn an income as a result of their activities on the network. While this income is not seen as a dividend, it is considered as "earnings in return for their work". SEC Chairman Gensler, on the other hand, raised questions by talking about staking transactions in cryptocurrencies, even though he did not use the Ethereum name.
Speaking shortly after the Merge update took place, SEC Chairman Gensler touched on the staking of crypto assets on various platforms and said that these assets must pass the Howey test to see if they are a security. The Howey test is a practice that determines whether investors are earning a return on the services of brokers.
Although Gary Gensler did not talk about a crypto currency, the Wall Street Journal implied that Ethereum may soon be under the microscope in the news it brought up. In previous statements by the SEC, Ethereum was considered a commodity. However, it is now thought that the transition to the PoS model may change the situation. On the other hand, staking, which is at the base of this system, was a service previously used for Ethereum tokens. In the latest developments regarding crypto regulations in the US, a crypto bill submitted last month focused on the CFTC being the effective regulatory body for crypto companies operating in the country. If the CFTC is accepted as the effective regulatory body in the US crypto market, it seems likely that many cryptocurrencies, especially Bitcoin and Ethereum, will be defined as commodities.