Finally, lawmakers are pushing for clear rules governing digital assets, and they want the SEC to clarify Ethereum.
Members of the Republican Party in Congress, including the heads of key House committees, have petitioned SEC Chair Gary Gensler to establish more transparent regulations regarding the storage of digital assets like Ethereum (ETH) by Special Purpose Broker-Dealers (SPBDs).
A more transparent regulatory environment would greatly assist digital asset companies in meeting compliance requirements, as they pointed out in a letter they sent on March 26.
Legislators’ letter highlights the SEC’s unwillingness to classify assets precisely, thus leaving “digital asset securities” in a definitional vacuum.
Regulators have always seen these assets as non-secure, but there is concern that the SEC has not provided clear standards for SPBDs to follow when dealing with them.
After Prometheum Inc.’s subsidiary announced that it was providing Ethereum custody services to large investors, the question of whether Ethereum is a security or not became central to the request.
In the absence of a robust regulatory framework, this conduct raises concerns about potential adverse consequences.
The possible market dangers associated with Ethereum’s classification as a security have lawmakers screaming from the rooftops.
They claim this has the potential to shake up the digital asset markets and influence ETH Futures trading. The SEC’s failure to provide sufficient guidance, the letter argues, makes compliance more difficult and increases confusion in the digital asset area.
Finally, lawmakers in Congress express concern that the US digital asset markets may suffer as a result of the continued lack of clarity in regulations. In order to foster innovation and progress, they emphasize the need for transparent and uniform regulations.
Included in the 48-member letter demanding an answer from Gensler by April 9 are Patrick McHenry and Glenn Thompson, two representatives who have spearheaded the legislative effort to regulate digital assets in a more open and transparent manner.
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