U.S. Representatives Call for Consistency in SEC’s Review of Ethereum ETFs
A group of five U.S. representatives has urged the U.S. Securities and Exchange Commission (SEC) to adopt a consistent approach when reviewing applications for ethereum exchange-traded funds (ETFs), citing the approval of spot bitcoin ETFs as a precedent. In a letter addressed to SEC Chair Gary Gensler on May 22, Representatives French Hill, Tom Emmer, Mike Flood, Josh Gottheimer, and Wiley Nickel highlighted the significance of approving spot bitcoin exchange-traded products (ETPs) for both digital assets and the financial markets.
The lawmakers stressed the importance of maintaining fairness and consistency in the SEC’s evaluation of upcoming applications for other digital asset-backed ETPs. They called for the application of the same principles used in approving spot bitcoin ETPs to the pending ether ETP applications, noting that the legal considerations applicable to bitcoin also apply to ether.
The representatives emphasized that the SEC’s previous actions this year indicate a natural progression towards consistency in the application of standards and a reaffirmation of the legal reasoning behind the spot bitcoin ETPs decision. They encouraged the Commission to continue fostering financial innovation while ensuring the protection of federal securities laws for investors. The SEC faces upcoming deadlines for spot ethereum decisions on proposals by Vaneck and Ark Invest.
In a separate development, the U.S. House of Representatives passed H.R. 4763, known as the Financial Innovation and Technology for the 21st Century Act (FIT21), which aims to establish a clear regulatory framework for digital assets. This move, which received opposition from President Joe Biden and SEC Chair Gensler, is expected to significantly benefit the crypto industry. Additionally, both the House and the Senate recently voted to repeal the contentious SEC’s Staff Accounting Bulletin No. 121 (SAB 121).
What are your thoughts on the possibility of the SEC approving spot ethereum ETFs? Share your opinions in the comments section below.
