There is a war between theestablishmentand financial crypto, that is clear.Although some actors have embraced the crypto, the regulators are looking at it with suspicion.And one of the criticisms most powerful do to the crypto is the energy consumption.howeverethereum you've changed sti system of verification from Proof of Work (PoW) to Proof of Stake (PoS), drastically reducing the cost of energy.
However, this movement could end up to Ethereum and raise it to the respectable category of crypto, also you might end up with your category of crypto (asset,assets) andconvert it to a value(safety).
The long struggle for the categorization of the crypto
The situation is not new.The SEC in the US it takes years to threaten the crypto to categorize them as a value,a special type of asset that has an extra regulationand is, of course, overseen by the SEC.
However the creators and users most professionals do not want this, because the scrutiny would be huge and the regulation only it would stop working intermediaries, with a lot of capital and a lot bigger.The current decentralization would be complicated.These actors prefer that the crypto is consideredto commodity this , like gold.
At the moment the SEC has not managed to get crypto to be considered securities , because it does not pass the Howey test . This test determined that a contract is a security if the investor expects to return based on the work of a third party. Bitcoin is clearly not a security and neither is Ethereum so far (although there were attempts in its day, because the Ethereum Foundation raised money in its day by selling Ether ). However this could have changed.
The Ethereum movement that could change its category
Ethereum is no longer PoW without PoS. To change that had been on the roadmap for a long time but that many doubted would come to pass, due to its technical complexity. But the merge was successful and you can no longer mine Ethereum consuming large amounts of energy.
Now, the way to verify the transactions is somewhat more complex, but simplifying, there are actors who put an amount of Ether in staking , that is, blocked in exchange for profitability . And they confirm transactions by consensus. If someone tries to do something weird, he could lose his Ether, which means that there are no malicious actors or that an attack requires a lot of money (billions of dollars).
But of course, now that staking exists, you can consider Ether as a value , to security, since there is something native to the platform that provides profitability . It could happen that the SEC considers that Ethereum does pass the Howey test. And they have already announced that they are considering it . And they also consider that, since most of the Ethereum nodes are in the US, the jurisdiction of this country applies to the entire network .
What would it imply that Ethereum is considered a security?
That the Ether is considered to value have implications bigger than what you can think of to beginning.If there are any regulations that apply more serious to Ethereum this would affect all the projects that are below the network.Let's not forget that Ethereum is not just a crypto, but thattheir contracts smart are the umbrella for many other crypto, among them manystablecoins.
If the SEC decide that it has competition over Ethereum only the very big ones could afford to do projects there . The amount of bureaucracy and scrutiny they would have to go through is not for a simple startup . We are facing a paradigm shift, and freedom, decentralization and web3 would be completely questioned.
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