Allegations Surface: SEC Chair Faces Accusations of Unrevealed ETH Involvement by Former Ethereum Advisor Steven Nerayoff

Steven Nerayoff Alleges SEC Chair’s Undisclosed Ethereum Involvement

Steven Nerayoff, an early Ethereum advisor, has made serious allegations against SEC Chair Gary Gensler. Nerayoff suggests that Gensler has undisclosed deep ties with Ethereum and may be influenced by the Chinese Communist Party (CCP).

Growing Speculation Surrounding Ethereum ETFs

Nerayoff claims that the speculation surrounding an Ethereum ETF indicates a potential deeper involvement of the SEC with Ethereum than publicly acknowledged. He specifically accuses Gensler of indirectly endorsing the designation of ETH as a security by approving Prometheum in 2023 as the first and only special-purpose crypto broker-dealer licensed under SEC regulations—effectively backing an ETF under the radar.

Prominent Players Filing Applications for Ethereum ETF Approval

Fidelity, WisdomTree, and BlackRock have filed multiple applications for spot Ethereum ETF approval. However, the SEC has not yet clarified Ethereum’s legal classification, despite declaring some popular cryptocurrencies as securities.

Prometheum’s Compliance Avenue Criticized

Prometheum’s claim to have discovered a compliant avenue for crypto trading has been criticized by legal experts in the cryptocurrency industry. They argue that even if the SEC and FINRA endorse Prometheum’s framework, it would lack tradable assets.

Ethereum and Solana: Commodities or Securities?

Skeptics argue that cryptocurrencies like Solana and Ethereum resemble commodities such as oil or gold, falling outside the legal definition of security. As a result, they may be ineligible for registration.

Concerns Over Prometheum’s Special Designation

Prometheum gained attention by securing approval from FINRA to function as a special-purpose broker-dealer for digital asset securities. However, it is suspicious that it is the only company to have obtained this license.

Compromised Integrity Within the SEC?

Steven Nerayoff has raised concerns about compromised integrity within the SEC and related entities. He alleges that the Chinese Communist Party (CCP) has influence over the Ethereum blockchain, and entities like Wanxiang, which is closely involved with Prometheum, contribute to this influence.