Four Republican members of the U.S. Financial Services Committee expressed concerns about Prometheum Capital’s launch of Ethereum (ETH) custody services. They addressed these issues to the SEC and FINRA, highlighting legal ambiguities surrounding Ethereum’s status.
Letter to SEC and FINRA
Representatives John Rose, French Hill, Dusty Johnson, and William R. Timmons IV wrote to SEC Chairman Gary Gensler and FINRA CEO Robert Cooke. They pointed out that the SEC stated Ethereum is not a security. However, Prometheum announced otherwise and commenced its custody services in May. They questioned how Prometheum, designated as a broker-dealer authorized to custody only securities, could comply with SEC and FINRA regulations regarding ETH custody.
Concerns for the Future
These viewpoints highlight ongoing discussions about cryptocurrency regulations. Prometheum’s actions and regulatory responses continue to seek clarity regarding the legal status of crypto assets like Ethereum. If misinterpreted by the market, Republicans’ warnings about crypto could yield negative consequences, especially as they hold a rare majority in the Senate and House of Representatives.
Uncertainties in the Cryptocurrency Market
Uncertainties in the cryptocurrency market cause various disagreements among investors and regulators. In light of these developments, further clarification regarding the legal frameworks for Ethereum and other digital assets is anticipated.
The situation around Prometheum's Ethereum custody services underscores the need for further clarification on the legal status of crypto assets. Regulators and market participants will watch developments closely to ensure clarity and security within the crypto industry.
