US lawmakers have asked the SEC to clarify its position on Prometheum’s plans for Ether.

Lawmakers from the US House Financial Services Committee and the House Agriculture Committee have expressed concern over how the Securities and Exchange Commission (SEC) is handling Ether (ETH).

In the year In a March 26 letter to SEC Chairman Gary Gensler, U.S. lawmakers, House Financial Services Committee Chairman Patrick McHenry and Vice Chairman French Hill urged the commission to adjust crypto firm Prometheum's interest in providing institutional protection services to Ether. According to lawmakers, the announcement conflicts with the Commodity Futures Trading Commission's (CFTC) position to recognize ETH as a “safe digital asset.”

“[T]The agencies have an extensive public record of identifying ETH as a non-secured digital asset,” the lawmakers said. “There are a number of regulatory measures based on that position. […] [Prometheum’s] If the move is allowed to go ahead, it could have irreversible consequences for digital asset markets.

The SEC recently made claims suggesting that it intends to classify ETH as a security. Some experts have pointed out that this position may cause the Commission to refuse permission for the exchange of space ether funds. The SEC has already approved investment vehicles linked to ETH futures to list and trade on US exchanges.

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In contrast, the CFTC has recognized many cryptocurrencies such as Bitcoin (BTC) and Ether as commodities. The commission filed a civil enforcement action against KuCoin and its two founders on March 26, claiming that ETH, BTC, and Litecoin (LTC) are commodities and placing the exchange's actions “within the jurisdiction of the CFTC.”

The lawmakers added in their letter to Gensler:

“[T]He said the SEC's inability to provide clear rules for the digital asset marketplace or general guidance on asset allocation has further exacerbated the uncertainty in the digital asset ecosystem.

Following Promethium's ETH protection announcement in February, CFTC Chairman Rustin Behnam restated the commission's position on Ether at a House Financial Services Committee hearing, warning of a potential conflict with the SEC over digital asset rules. In the year In November 2023, CFTC Commissioner Christine Johnson outlined several possible ways forward for regulatory transparency in crypto: through the courts, company policies, and legislation from Congress.

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