A group of Republican lawmakers, including the chairs of key House committees, have asked SEC Chairman Gary Gensler to develop clearer rules for digital assets such as Ethereum (ETH) and their custody by specialized broker-dealers (SPBDs).
Their March 26 letter highlights the critical need for regulatory transparency to make it easier for operators in the digital asset sector to comply with the rules.
The lawmakers' letter emphasizes the SEC's reluctance to clearly classify assets and that the definition of "digital asset securities" remains unclear.
The #SEC is concerned about the lack of clear guidance for SPBDs dealing with #digital assets.
The request concerns whether #BTC should be classified as a security after Prometheum Inc. announced that its subsidiary will offer Ethereum custody services to large investors.
The measure raises concerns about possible negative consequences if it goes forward without a robust regulatory framework.
Lawmakers warn of potential market risks if #ETH is classified as a security.
They argue that it could affect ETH futures trading and disrupt the digital asset market. The letter criticizes the SEC for lacking adequate guidance, making compliance more difficult and contributing to uncertainty in the digital asset market.
Finally, the lawmakers warn that continued regulatory uncertainty will negatively impact the U. S. digital asset market. They emphasize the need for clear and consistent rules to support innovation and growth.
The letter, signed by 48 lawmakers including Patrick McHenry and Glenn Thompson, demands a response from Gensler by April 9, underscoring lawmakers' desire for a more transparent approach to digital asset regulation.
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