A bipartisan group of House lawmakers, including Majority Whip Tom Emmer and New Jersey Democrat Josh Gottheimer, is urging the SEC to approve spot Ethereum ETFs. In a letter to SEC Chairman Gary Gensler, they emphasized that approving these ETFs would provide investors with safe and regulated access to cryptocurrencies. The lawmakers cited Bitcoin exchange-traded products (ETPs) as a significant step for the crypto and financial markets. They hope that the SEC will continue this positive trend by approving other crypto ETPs, specifically spot Ethereum ETFs.
The Congressmen believe that these approvals are necessary to prioritize investor protection. They stated that the SEC’s market surveillance and enforcement of federal securities laws help minimize concerns about market manipulation and illegal activities. The transparency and reporting requirements of the ETFs will also assist investors in making informed decisions.
Gary Gensler, the SEC Chairman, has expressed satisfaction with his agency’s performance in court cases related to cryptocurrencies. He has initiated discussions with Ethereum ETF issuers regarding S-1 registration statements. This sudden change in plan reportedly caught the Division of Investment Management off-guard.
Eric Balchunas, a senior ETF analyst at Bloomberg, found it interesting that the letter mentioned “other digital assets” in addition to Ethereum. He suggested that the ETF industry may test the SEC’s limits by filing for various coins, similar to what has happened in Europe.
Today is the SEC’s deadline to decide on VanEck’s ETF, and the issuers will be notified of the SEC’s decision later in the day. Balchunas believes that the SEC will approve all the products simultaneously, as they did with spot Bitcoin ETFs.
The approval process involves the SEC approving the 19b-4 forms, as they did for Bitcoin’s ETFs. Once these forms are approved, the S-1 registration statements must become effective before trading can begin. Balchunas stated that the forms are typically sent back for amendments and refiled, but the SEC can approve the final versions as soon as they are submitted. Fidelity and BlackRock have recently filed amended S-1 forms, removing staking from their products.
Source: US House (image)