- The US House Financial Services Committee claims the SEC’s recent Ethereum (ETH) security claims contradict statements made by chairman Gary Gensler.
- The Committee says it will continue to hold the SEC accountable for its regulatory overreach within the digital asset market.
- The SEC’s classification of Ethereum as a security or commodity is critical in ongoing applications to issue the United States’ first Spot ETH ETF.
The US House Financial Services Committee has accused the Securities and Exchange Commission (SEC) of being contradictory regarding whether Ethereum should be classified as a security. This claim comes after recent reports that the SEC has been investigating Ethereum’s status since March 2023.
SEC’s History of Conflicting Statements on Ethereum
The House Financial Services Committee called out the SEC’s contradictory stance on Ethereum via a statement on Twitter. They noted that the SEC’s claims about ETH’s security status contradict previous statements made by SEC chairman Gary Gensler.
In recent Congressional hearings, Gensler had refused to comment on Ethereum’s status as either a security or commodity. However, the SEC recently filed court documents portraying Ethereum as a security.
Committee Says SEC Misled Congress
Committee chairman Patrick McHenry reinforced the idea that Gensler misled Congress about ETH’s status. He claimed recent filings show an “intentional attempt to misrepresent the Commission’s position.”
Just months prior, a federal judge had sanctioned an SEC lawyer for lying about the SEC’s stance to the court. The security designation has implications for potential Ethereum ETF applications.
Conclusion
The US Banking Committee says it will continue holding the SEC accountable for “regulatory overreach” in crypto markets. The conflicting statements on Ethereum are the latest issue highlighted by the committee in the SEC’s crypto regulation approach.
