According to a letter for SEC Chair Gary Gensler, leaving Ether in regulatory limbo between the SEC and CFTC could have “irreparable consequences for the digital asset markets.”
Lawmakers with the United States House Financial Services Committee and House Agriculture Committee have expressed concerns about how the Securities and Exchange Commission (SEC) intends to handle Ether (ETH).
In a March 26 letter to SEC Chair Gary Gensler, U.S. lawmakers, including House Financial Services Committee Chair Patrick McHenry and Vice Chair French Hill, urged the commission to address crypto firm Prometheum’s intention to offer institutional custody services for Ether. According to lawmakers, the announcement is at odds with the Commodity Futures Trading Commission’s (CFTC) stance on recognizing ETH as a “non-security digital asset” under its purview.
“[T]he agencies have an extensive public record identifying ETH as a non-security digital asset,” said the lawmakers. “There are multiple regulatory actions grounded in that position […] [Prometheum’s] action, if allowed to proceed, could have irreparable consequences for the digital asset markets.”