The US House Financial Services Committee has released a statement saying the US Securities and Exchange Commission (SEC) was contradictory in its Ethereum (ETH) security claim. Indeed, they note that the claims about ETH’s security status directly contradict statements from the agency’s chairman, Gary Gensler.
Within the statement, the US Banking Committee claimed they will “continue to hold the SEC accountable for its regulatory overreach” within the digital asset market. The questions regarding the agency’s classification of Ethereum have been critical in ongoing applications to issue the United States’ first Spot ETH ETF.
Also Read: SEC Has Been Investigating Ethereum (ETH) Since March 2023
US Banking Committee Calls Out SEC for ETH Security Claim
The ongoing debate regarding the SEC’s security status of Ethereum has continued. Reports have recently revealed that they have been investigating the asset since March 2023. Moreover, there have been rumblings that the agency has been seeking a campaign to ensure the asset is classified as a security.
Now, the US Banking Committee is speaking up, as they have recently said the SEC is contradictory in its ETH security claim. Specifically, the House Financial Services Committee took to X (formerly Twitter) to release a statement regarding the development.
Also Read: SEC Sued Over Ethereum, Prosecutors Say ETH Isn’t A Security
There, they noted the SEC’s security claim “contradicts previous statements of the SEC and Chair Gensler.” Previously, Gensler had refused to comment on whether Ethereum was a security or commodity in recent Congressional hearings.
Subsequently, Chairman Patrick McHenry reinforced the perspective that Gensler “misled Congress” concerning ETH’s security status. Moreover, the claims come “just months after a federal judge sanctioned SEC enforcement lawyer for lying to the court,” in his statement.
McHenry says that recent court filings display “an intentional attempt to misrepresent the Commission’s position.” Conversely, the security claims about Ethereum have been an important part of potential spot ETF issuance in the United States.