Nowadays, when the expectation of Spot Ethereum ETF approval has diminished, a new move has come from the US senators.
Rhode Island Senator Jack Reed and California Senator Laphonza Butler wrote a letter to SEC Chairman Gary Gensler.
In their letter to the SEC Chairman, the Senators called for meticulous review and caution in the approval process of cryptocurrency ETFs.
Senators have taken a cautious approach to ETFs, saying they should not be approved, citing concerns about market integrity and investor protection.
At this point, the senators, who generally oppose the approval of all cryptocurrency ETPs, also touched upon Ethereum ETF applications over the spot Bitcoin ETF approval.
“Retail investors will face major risks from ETPs that refer to thinly traded cryptocurrencies or cryptocurrencies whose prices are particularly susceptible to pump-and-dump or other fraud schemes.
While Bitcoin is more protected against fraud and manipulation, markets for other cryptocurrencies are much more subject to abuse.
That's why we think cryptocurrency ETPs should not be approved in general.
“And finally, after the SEC's approval of spot Bitcoin ETFs, we believe these approvals should strictly limit precedent enforcement.”
While there were reactions to the senators' letter, Coinbase Chief Legal Officer Paul Grewal also stated that he was against this approach.
Responding to the letter from the X account, Grewal said that Ethereum, which is awaiting spot ETF approval, has a higher trading volume than many S&P 500 stocks.
Grewal also stated that senators have documents that can address their concerns about Ethereum and other cryptocurrency ETFs, and that they can find answers to their concerns in the 27-page comprehensive report sent to the SEC recently.
Respectfully Senators, the evidence points exactly the opposite way. We have discussed our analysis with SEC staff and would be happy to do the same for you and any other policy makers who have questions. 1/7 https://t.co/juFj4QyDnj
— paulgrewal.eth (@iampaulgrewal) March 15, 2024
*This is not investment advice.
