US Congressmen Urge SEC to Approve Spot Ethereum ETFs

A group of House lawmakers is pushing the SEC to approve spot Ethereum ETFs. The bipartisan group includes Majority Whip Tom Emmer and New Jersey Democrat Josh Gottheimer. They sent a letter to SEC Chairman Gary Gensler urging the approval. 

Also Read: Crypto Market Tensions Rise as ETF Decision Nears for Ethereum

The lawmakers believe that approving these ETFs will give investors safe and regulated access to cryptocurrencies. The letter emphasized that Bitcoin exchange-traded products (ETPs) were a big step for crypto and financial markets.

Lawmakers Reason With Gensler

The letter further highlighted the benefits of Bitcoin ETFs, such as offering a transparent and regulated way for investors to gain exposure to Bitcoin. The lawmakers hope that the SEC would continue this positive trend by approving other crypto ETPs, specifically spot Ethereum ETFs.

According to the Congressmen, these approvals ensure investor protection remains a top priority. The SEC’s market surveillance and enforcement of federal securities laws help reduce concerns about market manipulation and other illegal activities. The transparency and reporting requirements of the products will help investors make informed decisions. 

Gensler Thinks He Has Done Well

Gary Gensler, the SEC Chairman, has stated that his agency has performed well in court cases related to cryptocurrencies. He has begun discussions around S-1 registration statements with the Ethereum ETF issuers, according to a source. The Division of Investment Management was reportedly caught off-guard by the sudden change in plan.

Senior ETF analyst at Bloomberg, Eric Balchunas, said he found it interesting that the letter mentioned “other digital assets” besides Ethereum. He noted that the ETF industry is known for pushing the envelope and might test the SEC’s limits by filing for various coins, similar to what has happened in Europe.

Also Read: BlackRock’s New Spot Ethereum ETF Filing Excludes Staking

ETF Issuers Await SEC’s Notice

Today is the SEC’s deadline to decide on VanEck’s ETF. Later in the day, the issuers will be alerted of the SEC’s decision. Balchunas has said that he believes the SEC will approve all the products simultaneously, as they did with spot Bitcoin ETFs.

The process involves the SEC approving the 19b-4 forms, as was done for Bitcoin’s. Once these forms are approved, the S-1 registration statements must become effective before trading can begin. According to Balchunas, the forms are usually sent back for amendments and refiled.

But the SEC can approve the final versions the moment they are submitted. Recently, Fidelity and BlackRock have filed amended S-1 forms, removing staking from their products.

Cryptopolitan reporting by Jai Hamid