A group of bipartisan House representatives sent a letter to SEC Chair Gary Gensler urging him to approve spot Ether ETPs following a successful vote in the House. The letter, signed by several representatives, argued that approving spot ETH products would demonstrate consistency with the Commission’s standards while providing full protection for investors. The representatives emphasized the importance of maintaining a consistent and equitable approach when reviewing applications for digital asset-backed ETPs and highlighted the need to apply the same principles used in approving Bitcoin ETPs to Ether ETPs.
According to Bloomberg ETP analyst James Seyffart, the odds of spot ETH ETPs being approved this week are approximately 75%. This follows the SEC’s approval of spot Bitcoin ETPs earlier in the year, signaling a positive direction for the approval of spot ETH products. The letter from the House representatives emphasized the importance of approving these ETPs to protect investors and embrace the modern financial market. The momentum for spot ETH ETPs is increasing, with expectations that the SEC will approve applications from Van Eck and ARK by a specified deadline.
The news of the congressmen’s letter comes during a time of regulatory momentum for spot ETH ETPs, despite previous speculation that the SEC may push back against their approval. Recent developments have shown that the SEC is facing backlash from Congress for its regulation-by-enforcement approach. Lawmakers have taken action to overturn the SEC’s controversial staff accounting bulletin, SAB121, and have voted to delegate greater crypto regulatory power to the CFTC through the FIT21 Act. This pushback on the SEC’s treatment of digital assets could potentially impact the approval of spot ETPs and lead to a more favorable outcome.
Analyst Eric Balchunas believes that the approval of spot ETH ETPs is imminent and may happen around 4 PM on Thursday. The regulatory landscape for crypto assets is evolving, with congressional pressure potentially influencing the SEC’s decision-making process. The approval of spot ETH ETPs would not only benefit investors but also demonstrate the SEC’s commitment to protecting investors and adapting to the changing financial market. Overall, there is growing support for the approval of these products, and stakeholders are hopeful for a positive outcome.
