U.S. senators Jack Reed (D-RI) and Laphonza Butler (D-MS) wrote a letter to the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, earlier this week regarding the Commission’s potential approval of crypto exchange-traded funds (ETFs).
After the recent approval of 1 spot $BTC ETFs in early January, the senators are urging the Securities and Exchange Commission (SEC) to take steps to protect investors following its recent approval of the listing and trading of certain spot bitcoin exchange-traded products (ETPs).
The letter says
We believe the SEC should strictly limit the precedential application to these approvals … The Commission is under no obligation to approve such products, and given the risk, it should not do so.
It seems their premises is that the bitcoin far more established and scrutinized than the market for any other cryptocurrency so they do not believe that other cryptocurrencies show the trading volumes or integrity to support associated ETPs.
source
The senators also took the opportunity to urged the SEC to take several specific steps to address the risks posed by the spot bitcoin ETFs already approved. They specifically asked the SEC to carefully scrutinize brokers and advisors’ communications regarding bitcoin ETPs. I believe that these ETFs are not for every investor, but at this point limiting access for those who are willing and understand the risk associated with the asset class is insulting to retail investors. I hate regulation disguised as consumer protection when it a thinned vail of a few not understanding the asset class and afraind to loose their power and influence over existing systems.
They took time to detail the risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes with out contrasting that the stock market is full of the same pump and dump setups daily.
I believe the reason for this letter is the SEC currently has about 10 spot ether $ETH ETF applications pending. May is the first deadline for the Commission to decide whether to approve a spot ETH ETF.
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In a bull market, news does not affect prices much
This is true
Hm
They are just trying to buy time so they can buy more before the price goes up! It's ridiculous that even when we finally get the SEC to play ball we have these hooligans playing cowboy trying to shut things down.
I think they are looking for control. They are the kid who if they can not win takes the ball home.
Popular crypto is good as a safe transaction but there are risks in crypto and that is what they talk about
The claim the risk are too great but let the same risk happen in other markets.
These senators don't understand crypto and they hate it's volatility. But that is what crypto is and if someone is buying and ETF they should do their own research and understand the risks. We don't need government to tell us what we can or can't invest in...
They did not make a buck and can not control it so they are spreading fear and trying to ban it.
I see a commonplace in the politicians that are coming at crypto… and it starts with a D…
Just saying…
It is all too common I think it's the lack of control they have on it.
How much do you want to bet they invested money in BTC ETFs and are worried their investment will lose money when another crypto ETF is released?
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I bet they are invested...
I bet they are too, and are afraid they'll lose money
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STOPEvery single time I always wonder why the sec is always against the crypto world
Me too I think they just want the control.
It actually looks like the people are not yet seeing the need for people to invest in crypto etf
I think some are but there are a lot of people that have still not join the space.