A bipartisan group of lawmakers in the United States has called on the Securities and Exchange Commission (SEC) to consider approving Exchange Traded Funds (ETFs) for Ethereum. The request was made in a letter signed by five members of the House Financial Services Committee, representing both political parties and led by Representative French Hill.
The letter draws attention to the SEC’s approval of Bitcoin ETFs in January, which was seen as a significant step forward for digital assets and the American financial markets. The lawmakers argue that approving an Ethereum ETF would be a natural next step and would demonstrate the SEC’s consistency in applying its standards. They state in the letter, “With the commission’s actions earlier this year, it seems a natural progression that would not only demonstrate consistency in the commission’s application of its standards, but also affirm the legal reasoning that facilitated spot Bitcoin ETPs.”
In addition to requesting approval for an Ethereum ETF, the members of Congress also urged the SEC to adopt a consistent and fair approach when considering future applications. They emphasized the importance of considering other products based on digital assets, not just focusing on the Ethereum ETF.
Eric Balchunas, an ETF analyst at Bloomberg, commented on the lawmakers’ choice of words, suggesting that it could be a sign of future ETF applications involving other cryptocurrencies. He said, “It will be interesting to see how far and how quickly the ETF industry pushes the envelope (which is something it is good at). I wouldn’t be surprised if they attacked the SEC’s vulnerability and filed applications for all kinds of coins (like they did in Europe) to test the limits.”
The deadline for the first application for a spot Ethereum ETF is today, and the SEC is expected to announce its decision on the application soon.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.