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Two U.S. senators have urged the Securities and Exchange Commission (SEC) to cease the evaluation of applications for exchange-traded funds linked to any cryptocurrency and to reject those that have already been submitted, including requests for spot Ethereum ETFs.
Jack Reed and Laphonza Butler, Democrats representing Rhode Island and California, respectively, addressed a formal letter to Gary Gensler, the SEC Chair, insisting on an immediate halt to the review of any applications for exchange-traded funds based on digital currencies. The senators contend that crypto ETFs present “significant risks” to retail investors.
The senators assert that the endorsement of crypto ETFs is leading investors to focus more on markets “fraught with fraud and manipulation.” Specifically, Reed and Butler are calling on the SEC to ensure that the recent approval of spot Bitcoin ETFs does not set a precedent for further expansion of this initiative. They requested Gensler to reject nine pending applications for spot Ethereum ETFs to avert future requests for securities based on other altcoins.
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In their correspondence, the senators also advocate for enhanced oversight of spot Bitcoin ETFs and demand stricter regulations for brokers and issuers of these investment products.
Paul Grewal, General Counsel at Coinbase, stated that the senators’ worries are entirely misplaced, as Bitcoin and most leading altcoins exhibit a high degree of liquidity that surpasses even the largest S&P 500 stocks. Grewal noted that their letter simply reflects the increasing political apprehension regarding the success of the spot Bitcoin ETF market.
Notably, spot Bitcoin ETFs continue to achieve new milestones. Barchart reports that on March 14, the trading volume of iShares Bitcoin Trust (IBIT) surpassed $3.9 billion, setting a new record. Furthermore, issuers of spot Bitcoin ETFs are actively repurchasing BTC as the demand for their assets rises.
Сообщение Debate Around Crypto ETF Approval Unfolded in U.S. появились сначала на CoinsPaid Media.
