tl;dr
In a significant development for the U.S. crypto industry, Prometheum Inc. is preparing to offer custodial services for Ethereum tokens (ETH), prompting 48 members of Congress, including influential House Republicans, to demand answers from SEC Chair Gary Gensler. The lawmakers argue that ETH is no...
In a significant development for the U.S. crypto industry, Prometheum Inc. is preparing to offer custodial services for Ethereum tokens (ETH), prompting 48 members of Congress, including influential House Republicans, to demand answers from SEC Chair Gary Gensler.
The lawmakers argue that ETH is not a security and should not be handled as such by a special purpose broker-dealer like Prometheum. This move has sparked a debate between the SEC and the Commodity Futures Trading Commission, highlighting the regulatory uncertainty surrounding ETH. If allowed to proceed, this action could have significant implications for the digital asset markets and the future of crypto regulation in the U.S.
As Prometheum Inc. nears an unprecedented moment in U.S. crypto history by beginning a custody operation that intends to hold customers' Ethereum tokens (ETH), the industry's friends in Congress are demanding the Securities and Exchange Commission (SEC) explain what it means to do about this first U.S. special purpose broker-dealer (SPBD) for digital assets.
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