In the midst of increasing anticipation for the potential approval of a spot Ether (ETH) exchange-traded fund (ETF) in the United States, lawmakers in the House are urging the securities regulator to give the green light to this new product.
A bipartisan group of House lawmakers, including Majority Whip Tom Emmer and Democrat Josh Gottheimer, penned a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler on May 22, requesting the approval of spot Ether (ETH) ETFs. They argued that such an ETF would provide investors with a safer and more regulated way to access ETH.
The lawmakers emphasized the importance of the SEC maintaining a consistent and fair approach when reviewing applications for other digital asset-backed ETFs in their letter. Although they mentioned ETFs based on “other digital assets,” they did not specify any besides Ether. Bloomberg ETF analyst Eric Balchunas highlighted the letter on May 23 and noted the lawmakers’ mention of “other digital assets,” speculating on the potential expansion of the ETF industry.
The news comes as the cryptocurrency community eagerly awaits the SEC’s decision regarding the possibility of approving an Ether ETF by the end of this month. The community has become more hopeful about the approval as U.S. lawmakers continue to push for a spot ETH ETF.
On May 22, another group of lawmakers, including Patrick McHenry, chairman of the House Financial Services Committee, and Bill Huizenga, subcommittee head, demanded records from the SEC related to the custody services provider Prometheum. They also expressed dissatisfaction with the SEC’s response to a previous inquiry about Ether’s classification as a security instead of a commodity.
Meanwhile, Hong Kong regulators are reportedly considering allowing staking for spot Ether ETFs, which began trading on April 30, 2024, along with spot Bitcoin (BTC) ETFs. In contrast, the U.S. introduced spot Bitcoin ETFs in January 2024 but has yet to approve a spot Ether ETF.
Magazine: Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower