A bipartisan group of US lawmakers, led by Rep. French Hill, has penned a letter to the SEC urging the approval of spot Ethereum exchange-traded funds (ETFs), as reported by Politico. The letter, signed by five members of the House Financial Services Committee, emphasizes the importance of consistency and equity in the SEC's approach to reviewing ETF applications.
Key Points from the Letter:
- Emphasis on Consistency: The lawmakers highlight the approval of spot Bitcoin ETFs earlier in the year as a significant milestone for digital assets and financial markets. They argue that approving Ethereum ETFs would demonstrate consistency in the SEC's application of standards and legal reasoning.
- Call for Equitable Treatment: The letter urges the SEC to maintain a consistent and equitable approach when reviewing upcoming applications, referring to "other digital asset-backed ETPs" rather than solely focusing on Ethereum ETFs. This choice of words suggests the possibility of broader ETF applications related to cryptocurrencies.
Bloomberg ETF analyst Eric Balchunas noted the lawmakers' use of language in the letter, indicating a potential expansion of ETF applications beyond Ethereum. He suggests that the ETF industry may exploit any perceived vulnerability in the SEC's stance by filing applications for various cryptocurrencies to test the limits.
Upcoming Deadline and SEC Response:
The first spot Ethereum ETF application deadline ends today, prompting the SEC to provide a clear stance on these investment instruments. The outcome of this decision will have significant implications for the cryptocurrency market and ETF industry moving forward.
The letter from US lawmakers underscores the growing pressure on the SEC to approve Ethereum ETFs and maintain consistency in regulatory treatment across digital assets. As the deadline for the first application approaches, market participants eagerly await the SEC's response and its potential impact on the future of cryptocurrency ETFs.