ConsenSys has openly disputed the SEC's perspective that Ethereum's transition to a Proof-of-Stake protocol classifies it as a security, marking a significant controversy in the realm of cryptocurrency regulation.

This disagreement sheds light on the complexity of categorising digital currencies and the regulatory challenges that come with innovative technological changes.

The conversation around whether the Proof-of-Stake mechanism inherently turns Ethereum (CRYPTO:ETH) into a security is pivotal, with ConsenSys firmly arguing against the SEC's interpretation.

This debate underscores the ongoing struggle to define and regulate cryptocurrencies within existing financial laws, reflecting broader uncertainties in the digital currency space.