Four Republicans Pen Letter to SEC and FINRA, Say Regulators ‘Complicit’ in Perpetuating Confusion in Crypto

4 Republican members of the US Home Committee on Monetary Companies are elevating issues concerning the US Securities and Trade Fee (SEC) and the Monetary Trade Regulatory Authority’s (FINRA) place on Prometheum Capital’s launch of Ethereum (ETH) custody providers.

In a letter addressed to SEC Chairman Gary Gensler and FINRA President and CEO Robert Cooke, U.S. Representatives John Rose, French Hill, Dusty Johnson and William R. Timmons IV say that the SEC has already acknowledged that Ethereum shouldn’t be a safety safety and that it’s a has a particular function. Dealer-dealers (SPBDs) corresponding to Prometheum can’t supply custody providers for non-securities.

Regardless of this, officers say Prometheum has publicly said that Ethereum is a safety service and even soft-launched custody providers for the crypto asset in Could.

“It stays unclear to us how Prometheum, as a FINRA-approved SPBD to carry securities-only securities, can maintain ETH in accordance with SEC and FINRA guidelines, and why the SEC and FINRA proceed to permit Prometheum to carry ETH for the general public to maintain. as safety.”

The letter states that Prometheum’s assertion and actions are “deceptive” and have already precipitated confusion within the market, with the silence of the SEC and FINRA worsening the scenario.

“The SEC and FINRA are complicit in perpetuating confusion and uncertainty within the market, which in the end harms market contributors and customers.

The SEC and FINRA’s silence is irresponsible and continues to lift troubling questions because it pertains to the SPBD’s necessities and course of, in addition to the SEC’s and FINRA’s skill to oversees broker-dealers and ensures the integrity of the market.”

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