Four Republican members of the US Financial Services Committee reject Prometheum Capital’s Ethereum (ETH) 
$3,137 He expressed his concerns about the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) upon launching custody services.
Related Letter to SEC and FINRA
In their letter to SEC Chairman Gary Gensler and FINRA CEO Robert Cooke, Representatives John Rose, French Hill, Dusty Johnson and William R. Timmons IV stated that the SEC has already expressed its opinion that Ethereum is not a security.
Despite this, officials stated that Prometheum publicly stated that Ethereum was a security and launched custody services for the crypto asset in May.
“As an SPBD approved by FINRA only to hold securities, it is unclear how Prometheum could have stored ETH in compliance with SEC and FINRA rules.”
The letter emphasized that Prometheum’s statements and actions were “surprising” and caused confusion in the market, and that the silence of the SEC and FINRA made the situation worse.
“The SEC and FINRA are helping to perpetuate uncertainty and confusion in the marketplace, which ultimately harms market participants and consumers.”
Representatives expressed concerns about the SEC and FINRA’s ability to supervise broker-dealers and ensure market integrity.
Concerns About the Future
These views come to the fore as part of the ongoing debate on cryptocurrency regulations. Prometheum’s actions and regulatory responses continue the quest for clarity on the legal status of crypto assets like Ethereum. This warning made by Republicans about crypto may have negative consequences if it is misunderstood by the market. Regulatory clarity must be completed next year, with Republicans holding rare majorities in the Senate and House of Representatives.
Uncertainties in the cryptocurrency market cause various disagreements between investors and regulators. In light of these developments, further clarifications regarding the legal frameworks of Ethereum and other digital assets are expected.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
