A coalition of Republican members of Congress, including influential heads of House committees, has formally petitioned SEC Chair Gary Gensler to provide more precise regulations on digital assets like as Ethereum (ETH) and their safekeeping by Special Purpose Broker-Dealers (SPBDs).
The letter from the MPs on March 26 emphasizes the need of regulatory openness in order to facilitate compliance for enterprises operating in the digital asset industry.
The letter emphasizes the SEC’s hesitancy to accurately classify assets, resulting in an ambiguous definition of “digital asset securities.” The request pertains to the categorization of Ethereum as a security or not, in light of Prometheum Inc.’s announcement that its subsidiary would provide Ethereum custody services to major investors.
The legislators are apprehensive about the possible market hazards that may arise if ETH is designated as a security. This classification might have an impact on the trading of ETH Futures and cause disturbances in the digital asset markets.
Additionally, the letter condemns the SEC for its failure to provide sufficient direction, which has made compliance more difficult and created a climate of uncertainty in the digital asset industry.
