June 5, 2024
U.S. Lawmakers Advocate for Spot Ether ETF
Latest Cryptocurrency News

U.S. Lawmakers Advocate for Spot Ether ETF

Amid mounting anticipation for the potential approval of a spot Ether (ETH) exchange-traded fund (ETF) in the United States, bipartisan House lawmakers have urged SEC Chair Gary Gensler to greenlight the new product. Led by majority whip Tom Emmer and Democrat Josh Gottheimer, the lawmakers penned a letter to Gensler on May 22, advocating for the approval of spot Ether ETFs. They argued that such ETFs would provide investors with regulated and safer access to ETH.

Regulatory Advocacy and Market Analysis

In their letter, the lawmakers emphasized the need for the SEC to maintain consistency and equity in reviewing forthcoming applications for digital asset-backed ETFs. They urged the Commission to apply the same principles used in approving spot Bitcoin ETPs to pending Ether ETF applications. Bloomberg ETF analyst Eric Balchunas highlighted this development on X, noting the lawmakers’ reference to “other digital assets,” indicating a potential expansion beyond Ether. Balchunas speculated on the ETF industry’s future actions, suggesting that lawmakers might leverage SEC vulnerabilities to introduce various coins for testing purposes.
Community Optimism and Regulatory Pressures

The news coincides with heightened community optimism regarding the SEC’s forthcoming decision on potential Ethereum ETF approval. U.S. lawmakers’ efforts to push for a spot ETH ETF reflect growing pressure on the SEC to greenlight such products. Additionally, another group of lawmakers, including chairman of the House Financial Services Committee Patrick McHenry and subcommittee heads Bill Huizenga, demanded SEC records related to custody services provider Prometheum. They expressed dissatisfaction with the SEC’s response to a previous inquiry regarding Ether’s classification as a security.

Global Regulatory Dynamics and Market Comparisons

Notably, Hong Kong regulators are reportedly considering enabling staking for spot Ether ETFs, which commenced trading on April 30, 2024, alongside spot Bitcoin (BTC) ETFs. While the U.S. introduced spot Bitcoin ETFs in January 2024, it has yet to approve a spot Ether ETF. This discrepancy underscores the evolving regulatory dynamics across different jurisdictions and highlights the ongoing scrutiny and anticipation surrounding the potential approval of Ether ETFs in the United States.

This confluence of regulatory advocacy, market analysis, and global regulatory dynamics underscores the complexities and implications surrounding the potential approval of spot Ether ETFs in the United States.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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