A group of GOP lawmakers, along with heads of financial and agriculture committees, have asked SEC Chair Gary Gensler for clear guidance on the regulatory treatment of non-security digital assets held by Special Purpose Broker-Dealers (SPBD).

In a letter dated March 26, the lawmakers seek clarity on Ethereum's status as well as definitions for crypto-related terms. The letter, signed by 48 members of Congress, calls for a response by April 9.

Specifically, the lawmakers are concerned about the lack of regulation and uncertainty regarding the custody of non-security digital assets by SPBDs. They question whether ETH should be classified as a digital asset security, raising concerns about potential repercussions in the market.

The letter criticizes the SEC for failing to provide comprehensive guidance on asset classification and defines "digital asset securities." The lawmakers argue that the lack of clarity has heightened uncertainty in the digital asset ecosystem and made it difficult for regulated entities to comply with SEC regulations.

Moreover, the letter highlights the broader implications of classifying ETH as a digital asset security, warning of its impact on commodity derivative exchanges and ETH Futures trading. The legislators express concern about the potential consequences for market participants, including limited access to risk management tools and price disruptions in the ETH market.

In conclusion, the lawmakers stress the importance of clear regulatory guidance to prevent a negative impact on US digital asset markets and encourage growth and innovation in the digital asset space.