A bipartisan group of US lawmakers has urged the Securities and Exchange Commission (SEC) to consider approving Exchange Traded Funds (ETFs) for spot Ethereum. The request was made in a letter signed by five members of the House Financial Services Committee, including representatives from both political parties, led by Representative French Hill.
The letter highlights the recent approval of spot Bitcoin ETFs by the SEC in January, which was seen as a significant step forward for digital assets and the American financial markets. Lawmakers argue that approving an Ethereum ETF would be a natural progression and would demonstrate consistency in the SEC’s application of its standards. They state in the letter, “With the commission’s actions earlier this year, it seems a natural progression that would not only demonstrate consistency in the commission’s application of its standards, but also affirm the legal reasoning that facilitated spot Bitcoin ETPs.”
In addition to calling for the approval of an Ethereum ETF, members of Congress also urged the SEC to take a consistent and equitable approach when considering future applications for ETFs based on other digital assets. This suggests that lawmakers are open to the possibility of ETF applications involving other cryptocurrencies in the future.
Bloomberg ETF analyst Eric Balchunas commented on the lawmakers’ choice of words, noting that this could be a sign of future ETF applications for other cryptocurrencies. He stated, “It will be interesting to see how far and how quickly the ETF industry pushes the envelope (which is something it is good at). I wouldn’t be surprised if they attacked the SEC’s vulnerability and filed applications for all kinds of coins to test the limits.”
The deadline for the first application for a spot Ethereum ETF is today, and the SEC is expected to release a final decision on the application.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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