In this post. Tom Emmer and Patrick McHenry accused the SEC of classifying etherium as securities and thus stifling blockchain innovation in the US.
They demanded that the SEC explain why free etheriums are considered securities and not other rewards programs such as credit card points.
The lawmakers warned that classifying decentralized tokens as securities would drive #blockchain projects out of the U. S. and hurt the economy. Emmer and McHenry asked SEC Chairman Gensler to provide clear answers and economic analysis on these issues by September 30.
Congressmen Tom Emmer and Patrick McHenry are outraged by the SEC's approach to blockchain regulation, especially its views on Ether. In a letter to SEC Chairman Gary Gensler, they question the logic behind the SEC's decision to classify Ether as a security.
#Etherium typically offers free tokens to early adopters and is an important element of a decentralized ecosystem.
Emmer and McHenry demand a response, arguing that the SEC's approach is completely flawed and could stifle innovation in the U. S. blockchain industry. The lawmakers write that
Efiriums play an important role in the development of decentralized networks. By defining them as securities, the SEC creates an unnecessary barrier to the development of these technologies.
A key part of Emmer and McHenry's argument is Gary's application of the Howey test, the legal basis for determining whether an asset is a security.
SEC believes that some aircraft fall under this classification because they may meet Howey's "investment" test.
Here, too, lawmakers disagree.
the SEC's position is inconsistent.
the SEC has long said that digital assets are not securities. But now it's saying that offering these assets for free could have some impact on securities regulation.
What does that mean?
lawmakers asked Gary to explain under what circumstances free digital assets would be considered securities under the Howey test.
They believe
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