The U.S. Securities and Exchange Commission is expected to make a decision on approving ether exchange-traded funds next week. However, Ric Edelman, head of the Digital Assets Council of Financial Professionals, believes that the approval will likely fail due to a lack of an overarching regulatory framework for all cryptocurrencies. Edelman emphasizes the need for regulations to protect investors from crypto scams, highlighting the outdated laws that are not built for digital technology. He criticizes SEC Chair Gary Gensler for not writing regulations that could harm consumers rather than help them.
Matt Hougan, chief investment officer of Bitwise Asset Management, is also advocating for new rules to govern the crypto space. He believes that the current securities laws, which are over 80 years old, do not align with the rapidly evolving world of digital assets and technology. Hougan stresses the importance of creating a safe and secure platform for investors while fostering innovation. Bitwise has submitted its own application for a spot ethereum ETF and remains optimistic about the future of crypto ETFs, following the success of bitcoin ETFs in lowering costs and improving regulation and security for investors.
Despite the potential delays in approving ether ETFs, Edelman and Hougan are hopeful that the SEC will establish a regulatory framework that will benefit both investors and innovation in the crypto space. They believe that regulatory clarity is essential in protecting investors from scams and fraud while fostering a thriving market for digital assets. While there may be challenges in aligning existing laws with the complexities of cryptocurrencies, the goal is to create a level playing field where investors can feel confident in their investments and the security of the platforms they trade on.
The two ether ETF proposals, submitted by VanEck and ARK Investments/21Shares, are awaiting approval or denial from the SEC this month. While there may be delays in the approval process, industry experts like Edelman and Hougan are optimistic about the potential for ether ETFs to enter the market and provide investors with new opportunities to invest in digital assets. As the crypto market continues to evolve, the push for regulatory clarity and investor protection will be crucial in creating a safe and secure environment for all market participants. Ultimately, the goal is to foster innovation while ensuring that investors are protected from risks and fraud in the digital asset space.
