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SEC Democrats: Stop Saying No to Ethereum ETF Spots and Any Other Cryptocurrency ETPs

Two Democratic US senators urged Securities and Exchange Commission Chairman Gary Gensler not to go any further in approving future crypto products after the commercial was approved Bitcoin Bitcoin/USD exchange-traded funds earlier this year. Senators Laphonza Butler of California and Jack Reed of Rhode Island said the SEC should limit future applications of crypto ETFs and that other cryptocurrencies do not “exhibit the trading volumes or integrity to support associated ETPs.” Both senators are also members of the Senate Banking Committee, which has jurisdiction over securities and financial markets. “Retail investors would face enormous risks from ETPs that reference thinly traded cryptocurrencies or cryptocurrencies whose prices are particularly susceptible to pump-and-dump or other fraudulent schemes,” they said. “The Commission has no obligation to approve such products and, given the risk, should not do so.”

Read the full story on The Block.

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