Republicans on the House Financial Services and Agriculture Committees have issued a formal request to the SEC for clarification on Ethereum's regulatory status. The urgency derives from Prometheum's intention to custody Ether (ETH). This announcement demonstrates a disparity between SEC requirements and the digital asset's long-standing status as a non-security.
The bipartisan committee, which includes Chairmen Patrick McHenry and Glenn "GT" Thompson, is looking for definite answers on critical topics such as a broker-dealer's ability to custody digital assets, the classification of ETH, and the regulatory implications of Prometheum's recent announcement.
Legislators are concerned about the risks of prolonged ambiguity. They cite SEC Chair Gary Gensler's cryptic comments, particularly his recent congressional dodge on whether ETH is a commodity. They underscore the urgent need for clear SEC advice that enables legitimate innovation and stability in digital asset markets.
According to MPs, the lack of clarification might destabilize derivatives markets. This also puts Ethereum-based exchange-traded funds (ETFs) in danger. Republicans are concerned that without open laws, the US digital asset markets may chill, posing a risk to American investors and the industry's growth.
