Former Ethereum Advisor Steven Nerayoff Accuses SEC Chair of Undisclosed ETH Involvement
Steven Nerayoff, a key figure previously advising Ethereum, leveled allegations at Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC) on Tuesday, hinting at Gensler’s undisclosed deep ties with Ethereum and potential influence by external political forces.
He additionally claimed that Gensler’s decisions might be strongly influenced by the Chinese Communist Party (CCP).
There’s a clamor for an Ethereum ETF which is driven by major interest from retail and institutional investors.
This is because a spot ETF would provide Ethereum investors with indirect exposure to the price movements of the second-largest cryptocurrency.
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"Specifically, he accuses Gensler of indirectly approving Prometheum Inc. to designate ETH as a security, effectively endorsing an ETF covertly. "https://t.co/CAP71sVm7N
— Eli (@elighvk) February 13, 2024
This has made prominent players like Fidelity, WisdomTree, and BlackRock file many applications for spot Ethereum ETF approval.
Despite declaring some popular cryptocurrencies as securities, the SEC hasn’t decided on Ethereum’s legal classification.
In the wake of the FTX collapse, Gensler has doubled the SEC efforts on crypto regulations. He also emphasized the sufficiency of current crypto regulations and stated that legal actions have been taken against exchanges for non-compliance.
Prometheum, a data analytics firm, claims it has discovered a compliant route for cryptocurrency trading. Subsequently, in 2023, the firm became the first and only special-purpose crypto broker-dealer licensed under SEC regulations.
In addition, it has also obtained approval to handle the clearing and settlement of digital asset securities trades.
Although it has yet to initiate trading or generate revenue,
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