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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