Why Ethereum Price is Under More Pressure After Gensler Comments

cryptonews.com:

Ethereum has successfully made its historic transition to Proof-of-Stake, but the asset's price action is not responding favorably to the move, partly due to SEC Chair Gensler's recent comments on staked assets being regarded as securities.

Following years of anticipation, the crypto community has been greeted by the Ethereum Merge. The event has often been described as the most historic event within the crypto space in recent times. 

Notwithstanding, Ethereum's transition to a PoS consensus mechanism means the network will utilize stakers for block validation. The SEC thinks this might make the asset a security, according to a report by Bloomberg.

Despite failing to specifically mention Ether, Gary Gensler's recent remarks on assets on a PoS blockchain fit the description of Ether. According to Gensler's speech on Thursday, tokens that require investors to stake them in order to earn yields are likely to be regarded as securities. Gensler noted that this modus operandi fits a business model common with assets under securities laws.

Staking a crypto asset involves depositing a portion of one's assets in a pool as a way of contributing to the security of the network. This approach of block validation is a distinguishing feature of a PoS blockchain, as opposed to mining with PoW blockchains.

Despite being much less energy-demanding, assets utilizing PoS might start seeing some heat from the SEC, now including Ether. It bears mentioning that prior remarks and reports from American authorities have often regarded the two largest digital assets, Bitcoin and Ether, as commodities.

Notwithstanding, these reports came at a point when Ether, like Bitcoin, still utilized mining for block validation. Gensler reiterated that Bitcoin