The switch from a proof-of-work to a proof-of-stake system is a major upgrade that dramatically reduces the carbon footprint of the coin.
The change may have caused regulators to consider whether ether should be treated as a security after the merger, which has caused the price of ether to fall.
The Wall Street Journal reported last week that if ether were to be considered a security, it would have to file extensive disclosures to the SEC, as well as face strict liability.
The stakes can't be higher. There is a chance that the merger will result in a paradigm shift in the way that the US handles cryptocurrencies.
Those who already hold ether can "stake" their investments and do the same thing if they so choose.
The Securities and Exchanges Commission has drawn attention to the fact that they're treating the holdings more like a security because of the way they're staked.
The SEC chairman said last week that the investing public is anticipating profits based on the efforts of others.
The Howey test is used to determine if an investor expects to make a profit from their work. The asset is considered a security if that were to happen.
By allowing investors to stake their investments, it looks like it's very similar to lending.
The Commodity Futures Trading Commission, an independent federal agency, the power to regulate digital commodities, is the subject of a debate among lawmakers.
The bill would require mainstream exchanges to register with the CFTC and give more information about how they do business.
The WSJ reports that opponents of the bill say the CFTC doesn't know how to regulate the space.
Gensler once described it as a "Wild West" when it came to how regulators should treat the digital currency.
The question is whether the merge could change the landscape for the better.
The chair of the SEC said that the merger could make cryptocurrencies a security.
The miners can still pollute after the merger.
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