Could Ethereum Be Classified as a Security Following the Merge?

Key Takeaways

  • A recent SEC investigation into insider trading has revived debates over whether Ethereum could qualify as a security.
  • Some have argued that ETH passes the Howey test due to the way it was launched and Ethereum’s move to Proof-of-Stake.
  • As ETH stakers earn revenue from validating blocks on the Ethereum network, there is an argument that ETH investors buy the asset with the expectation of a profit. However, a security classification from the SEC seems unlikely.

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