After the SEC approved spot Ethereum ETFs, a controversial situation arose with Prometheum Capital claiming Ethereum is a security.
Approval and Disagreements
The United States Securities and Exchange Commission (SEC) recently approved spot Ethereum ETFs, implying that Ethereum is not a security. However, Prometheum Capital continues to offer Ethereum custody services, claiming it as a security.
Congress Reaction
Republican members of the U.S. House expressed concerns about Prometheum Capital's classification of Ethereum as a security. Members of the House Financial Services Committee—John Rose, French Hill, Dusty Johnson, and William R. Timmons IV—sent a letter to SEC Chairman Gary Gensler and FINRA Chairman Robert Cook, pointing out that Prometheum Capital's actions create confusion in the market.
Market Implications
Representatives noted that the conflicting statements from Prometheum Capital add uncertainty to the market participants and pose potential risks to consumers. Ongoing discussions around Ethereum's classification continue to impact the digital asset market and its participants.
The current situation regarding Ethereum's classification draws interest and concerns from market participants. Future actions will depend on SEC clarifications and interactions with companies such as Prometheum Capital.
