In a recent development, US Lawmakers requested clarity from the SEC regarding the leading altcoin Ethereum. The MPs said the lack of clarity “exacerbates” uncertainty in the digital asset ecosystem. They also noted that it makes it harder for companies to comply with the regulation.
US Lawmakers: SEC be clear on Ethereum!
A group of Republican lawmakers continues to pressure SEC Chairman Gary Gensler. MPs have formally requested the government to provide clear guidance on the regulatory stance on the custody of non-security digital assets by Special Purpose Brokers (SPBDs). In this regard, the MP wrote a letter addressed to Gary Gensler.
This letter specifically requests that the SEC clarify the situation of the leading altcoin Ethereum. It also asks the SEC to create clear definitions for various terms related to crypto, digital assets, securities and investment contracts. The letter was signed by 48 members of Congress, including House Financial Services Committee Chairman Patrick McHenry and House Agriculture Committee Chairman Glenn Thompson. Lawmakers asked the SEC to respond to their questions by April 9.
What is the status of the leading altcoin Ethereum?
According to the letter, the SEC is not proposing a rule for asset classification. Moreover, it does not provide comprehensive guidance. Therefore, the term “digital asset securities” remained undefined. Lawmakers said they have concerns about the lack of transparency in the SEC’s SPBD regime and the potential regulatory impacts of allowing such custody services, despite public records from both the SEC and CFTC identifying ETH as a digital asset that is not a security. The letter poses the following question:
Is ETH a digital asset security?
The question is followed by several other questions depending on the answer. cryptokoin.comAs you follow from , Prometheum Ember Capital announced that it plans to offer custody services for Ethereum to its clients. The letter from Republican lawmakers followed shortly thereafter. MPs highlighted the “alarming scenario” that emerged with Prometheum’s announcement.
“The SEC is making the problem worse!”
The letter highlights the inconsistency between the SEC’s enforcement actions and the definition of ETH. He also criticizes the SEC for not providing comprehensive guidance or rules regarding asset classification for the crypto market. This lack of clarity “exacerbates” uncertainty in the crypto-asset ecosystem, lawmakers say. They also note that it complicates the ability of regulated entities to comply with SEC regulations.
The letter also highlights broader implications of the SEC potentially classifying ETH as a digital asset security, including the impact on CFTC-registered commodity derivatives exchanges and the availability of ETH Futures for trading. Such a decision is very important for market participants. It could potentially eliminate access to basic risk management tools. Additionally, it is likely to cause significant price fluctuations in the leading altcoin ETH market.
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