Bipartisan Lawmakers Urge SEC to Approve Spot Ether ETFs Amid Growing Market Anticipation
Summary:
U.S. lawmakers, including top-ranking representative Tom Emmer and Democratic member Josh Gottheimer, have urged SEC Chair Gary Gensler to approve spot Ether ETFs, emphasizing a need for the same principles used in Bitcoin ETF approvals. Bloomberg ETF analyst Eric Balchunas highlighted that their letter mentioned ETFs based on "other digital assets", instigating potentially wider industry action. Amid growing expectations for an Ethereum ETF approval, this news fuels optimism in the crypto community. However, dissatisfaction brews over Ether's classification as a security, not a commodity.
As the market waits for the possible green light of a spot Ether (ETH) exchange-traded fund (ETF) in the U.S., Congressional representatives are encouraging the securities governing body to approve the innovative commodity. A bipartisan alliance of lawmakers from the House - which includes top-ranking representative Tom Emmer and Democratic member Josh Gottheimer - formally issued a letter on May 22nd to SEC Chair Gary Gensler, advocating for the approval of spot Ether ETFs. Their argument centered on the idea that a prospective spot Ether ETF could provide investors with a more secure and regulated avenue to invest in ETH.
In their letter, the representatives emphasized the need for the Commission to approach subsequent digital asset-backed ETF applications with fairness and consistency. They advocated that the Commission should employ the same principles evident in the approval of spot Bitcoin ETPs when assessing pending Ether ETF applications, as the legal considerations relevant to Bitcoin are equally applicable to Ether.
Bloomberg ETF expert Eric Balchunas disseminated information regarding the letter on social media platform X on May 23rd. Notably, he pointed out that the letter stipulated ETFs based on "other digital assets," beyond Ether alone. In his comments, Balchunas surmised that it could be intriguing to observe how the ETF industry applies pressure, and how rapidly it does so.
The latest development surfaces as observers in the crypto community anticipate the SEC's impending decision on the potential approval of an Ethereum ETF, slated to occur by month-end. Encouragement from lawmakers has fueled increasing optimism around the likelihood of approval.
Notably, on May 22nd, an alternate group of lawmakers, which includes House Financial Services Committee leader Patrick McHenry and various subcommittee heads like Bill Huizenga, requested that the SEC reveal records pertaining to custody services provider Prometheum. The group also expressed dissatisfaction over the SEC's unsatisfactory response to a prior query on Ether's categorization as a security rather than a commodity.
In related news, rumors suggest Hong Kong regulators could consider permitting staking for spot Ether ETFs, which began trading on April 30, 2024, concurrently with spot Bitcoin ETFs. However, the U.S. introduced spot Bitcoin ETFs in January 2024 and still hasn't granted approval for a spot Ether ETF.
Published At
5/23/2024 6:06:03 PM
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