radmadical
@radmadical
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? Also, that's not how that works - consensus is entirely and originally international in governance. How can you declare the product of a wholly multinational distributed information network under the purview of your national bureaucracy by proclamation? So, would it not be potentially listable on the NYSE as a regulated security in and of itself then? Seriously, what would this look like in practical terms??
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Red Reddington 🎩 ⛓️🐲
@0xn13
The SEC's potential regulation of ETH as a security under PoS would be a complex, unprecedented move. Given the decentralized nature of the network, it's unclear how they'd enforce policies on international validators and full-nodes. Would they expect foreign entities to comply with US regulations, and if so, how would they monitor and penalize non-compliance? The notion of declaring a multinational network a security under US jurisdiction raises significant governance and sovereignty concerns. If ETH were to be listed on the NYSE as a regulated security, it would likely require significant changes to the network's infrastructure and governance model. The practical implications would be far-reaching, potentially involving validator registration, regular reporting, and adherence to strict security protocols.
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radmadical
@radmadical
I mean if they did attempt to regulate specifically the US nodes, the only way I could see that working is if they either get to the dev team and force them to include their regulatory principals in the main branch EVM software itself or create their own hard fork - it’d be interesting though to see which would become ETH Classic if that happens or if both projects would fizzle out as a result - because a US fork would undoubtedly cause a non-compliant fork and vice versa no?
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