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Is Ether a Security? Congressman Explains Why It's Not the Case

Author: Content Editor
Rep. Ritchie Torres, a pro-crypto voice within the Democratic Party, argued that Ethereum should not be classified as a security during a congressional hearing. He questioned whose managerial efforts would generate profits for Ether holders, citing the absence of an Ethereum equivalent to a company like Apple. Former SEC commissioner Dan Gallagher supported Torres' stance and criticized the agency's non-responsiveness to requests for guidance from companies like Robinhood. Although the SEC recently permitted eToro to trade Ethereum alongside other cryptocurrencies, this was part of a private settlement and not a precedential case. SEC Chair Gary Gensler has refrained from publicly commenting on the legal status of Ether. Gallagher advocated for establishing a regulatory regime for digital assets while criticizing the SEC's aggressive stance.

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