After the bankruptcy of FTX, regulators are now more attentive to the crypto space. What could this mean for Ethereum?
The FTX scandal has once again put crypto under the regulatory microscope. It is now, if it wasn’t already, the target of every regulator around the world.
A regulatory storm is expected to hit the crypto industry as it attempts to pick up the pieces.
Very careful regulation
Janet Yellen, US Treasury Secretary, responded to the news by stating (not the first time) that crypto markets need “very careful regulation”, according to Bloomberg.
Many crypto projects will be labeled with a “security tag” when this regulation is implemented. In a Squawk Box video, Gary Gensler, Chairman, stated that crypto investors need better protections.
Is Ethereum a security risk?
Ethereum is one cryptocurrency that has been the subject of a lot discussion about whether it is a security. Twitter user ‘Crypto Tea” believes that FTX is responsible for igniting “a fire under regulators *****”.

The FTX collapse put a fire under regulators assesSenators are calling for the SEC to enforce regulations ASAPhttps://t.co/mgkKUSUqWc
— Crypto Tea (@CryptoTea_ November 14, 2022

She quoted Senator Elizabeth Warren, who stated that the crypto industry “appears smoke and mirrors” et that “aggressive enforcement was necessary”.
Crypto Tea tweeted about Ethereum’s switch from proof-of-stake, stating that it had “put an enormous target” on Ethereum. She wrote that the issue and locking of coins by exchanges was “considered investment” and Vitalik’s hiring a team of developers and a marketer was “considered common enterprise”.

Crypto Tea referred to the fact that Gary Gensler stated that “Ethereum passes The Howey Test” and should therefore be “considered security”. She also said that Bitcoin was not a security because it is sufficiently centralised. She stated that Ethereum was not a security and that any other proof-of-stake crypto is also not secure.
Crypto Tea concluded that the SEC would call 99% of cryptocurrencies securities. They will then need to register with the SEC or they will not be able sell to US citizens.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

  

After the FTX bankruptcy, regulators are now more attentive to the crypto space. How will this affect Ethereum? The FTX bankruptcy has placed crypto once again under scrutiny. It was a target of every regulator around the world, but it is now. A regulatory storm is expected to hit the crypto industry as it tries to recover from the FTX disaster. Very careful regulation. Janet Yellen, the Treasury Secretary, has responded to the news saying (not for the second time) that the crypto market requires “very careful regulation”. According to Bloomberg, many crypto projects will be given a “security” tag when this regulation is implemented. According to a Squawk Box video, Gary Gensler, the Chairman of SEC, stated that “investors need better protections for crypto”. Ethereum is one cryptocurrency that has been causing a lot of controversy. Twitter user ‘Crypto Tea” believes that FTX is responsible for putting “a fire underneath regulator’s She quoted Senator Elizabeth Warren, who stated that Ethereum’s move to proof-ofstake had “put a large target” on its back. She said that the issue of coins locked by exchanges was “considered investment” and Vitalik’s hiring a team of developers and a marketer was “considered common enterprise”. Crypto Tea referred to the fact that Gary Gensler said that “Ethereum passes The Howey Test” and should therefore be “considered security”. She also stated that Bitcoin was not a security because it is sufficiently centralised. She stated that Ethereum was not a security and that any proof of stake crypto is also not. “Crypto Tea concluded the SEC would call 99% of cryptocurrencies securities. They will then have to register with SEC or they will not be able sell to US citizens. This article is not intended to be used for legal, tax, investment or financial advice.