Democrats to SEC: Just Say No to Spot Ethereum ETFs and Any Other Crypto ETPs

Two Democratic U.S. senators urged Securities and Exchange Commission Chair Gary Gensler not to go any further in approving future crypto products following its approval of spot Bitcoin BTC/USD exchange-traded funds earlier this year. Sens. Laphonza Butler of California and Jack Reed of Rhode Island said the SEC should limit future crypto ETF applications and that other cryptocurrencies do not "show the trading volumes or integrity to support associated ETPs." Both senators are also members of the Senate Banking Committee, which has jurisdiction over securities and financial markets. "Retail investors would face enormous risks from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes," they said. "The Commission is under no obligation to approve such products, and given the risk, it should not do so."