Rep. Ritchie Torres (D-NY), one of the strongest pro-crypto voices within the Democratic Party, recently spoke about the legal status of Ethereum (ETH) during a congressional hearing, arguing that the second-largest cryptocurrency should not be classified as a security. 

"The textbook example of a security is a stock. If I invest in the Apple stock, it means that I am expecting a profit from the managerial efforts of Apple, the company. If I buy Ether, from whose managerial efforts am I expecting a profit," Torres asked. 

Dan Gallager, a former commissioner of the Securities and Exchange Commission, stated that there was no Ethereum equivalent of Apple (the company). 

As reported by U.Today, the SEC recently conceded that Ethereum is not a security by permitting trading platform eToro to remain on the platform alongside Bitcoin and Bitcoin Cash. However, this was part of a private settlement with eToro, meaning that this case is not precedential. 

SEC Chair Gary Gensler has repeatedly refrained from publicly commenting on the legal status of Ether. 

Ignoring Robinhood 

Gallagher, who now serves as the chief legal officer at Robinhood, claims that his company had over a dozen meetings and calls over a year and a half. However, the SEC still ended up receiving a Wells notice. 

During the hearing, the former SEC commissioner claimed that the agency's staff was non-responsive to the company's repeated requests for guidance. 

Gallagher has criticized the commission's aggressive stance while also calling for establishing a basic regulatory regime for digital assets.