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New York University Professor Believes Ethereum Could Be Classified as a Security by SEC

According to a New York University professor, the crypto industry could be on the brink of significant changes due to the potential recognition of the second largest cryptocurrency by market capitalization as a security by the US Securities and Exchange Commission (SEC).

Nouriel Roubini shares SEC Chairman Gary Gensler’s view that Ethereum (ETH) is a security, despite claims to the contrary by ETH billionaires.

Roubini has previously accused Ethereum’s co-founders of being involved in a fraudulent ICO to enrich themselves.

In February, Gensler stated that cryptocurrencies, including ETH, could be considered securities, citing their similarity to ordinary shares in terms of ownership and control.

With Ethereum’s move from Proof-of-Work to Proof-of-Stake, the more ETH you have, the more significant your position in the system, which is akin to owning more shares in a company.

As a result, such assets could be considered securities and come under SEC regulation. The possible classification of ether as a security could have significant implications for the wider cryptocurrency industry, as discussed in a recent review by the Bits.media portal.