Gensler has ‘sown confusion’ over Ether as security debate — GOP lawmakers

Gensler’s position on Ether as a security has led to confusion, according to Republican lawmakers. Two GOP-led House committees are seeking clarity from the SEC and Chair Gary Gensler on whether Ether should be classified as a security. The lawmakers are concerned about the SEC’s ambiguity on this matter and the lack of transparency and definitive guidance. They highlight a contradiction in the SEC’s approach regarding custody of non-security digital assets by a Special Purpose Broker-Dealer (SPBD), which could have significant implications for the digital asset markets. The GOP representatives criticize Gensler’s reluctance to categorically state that ETH is not a security and emphasize the need for clarity. The SEC’s lack of a clear stance on Ether’s classification has caused uncertainty in the digital asset ecosystem. Prometheum’s announcement of offering custodial services for Ether has further intensified the debate. This situation highlights the challenges and uncertainties surrounding crypto regulation in the US and may reignite the regulatory debate and set a precedent for the SEC.