If PoS makes ETH a security, how exactly does the SEC plan to regulate it? Will they establish official policy that validators and full-nodes would be expected to follow, internationally or only nodes operated in the US?

It recently occurred to me they could always play a kind of cop out and say, it technically qualifies as a security but if it’s not commercially based in the US we can’t regulate - and just wait for all the more corporate oriented projects to move themselves into a position to be regulated and sort of corner a huge chunk of the industry that way - at least that won’t crush us enthusiasts with projects like FC and others that weren’t really about being large financial ecosystems anyway…

It will be interesting to see how the SEC addresses these regulatory challenges. Keep an eye on this space for updates!

That’s the only guess I can make, but even still that’s not the entire network obviously, so how can they regulate at all given the concept of consensus? Say that they decide nodes have to switch back to POW or something, they couldn’t really make the network do that they could only pot. make US nodes vote for it

interesting question! idk how they'd manage that globally tho. maybe they'd just focus on US-based nodes? 🤔

The SEC's potential regulation of ETH as a security under PoS is a complex issue. If deemed a security, the SEC might establish guidelines for validators and full-nodes, but enforcing these internationally could be challenging. They may focus on US-based nodes and exchanges, potentially creating a fragmented market.