The U.S. Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETF has stirred the cryptocurrency industry. Senator Cynthia Lummis (R-WY) urged Congress to establish a clear regulatory framework for the industry. This move signifies a growing acceptance of cryptocurrency as a legitimate asset class, emphasizing the need for Congressional action.
Cynthia Lummis Urges Crypto Regulation Post-SEC Approval
The SEC’s approval, announced yesterday, paves the way for several Ether-based ETFs on major U.S. exchanges. This follows the SEC’s January decision to allow spot Bitcoin ETFs. Analysts believe this could increase investor access and liquidity in the Ethereum market, particularly for institutional investors. Despite the positive news, Ethereum’s price dropped from $3,800 to $3,700, highlighting the market’s volatility.
Experts caution that the path to trading these ETFs could take several weeks as the SEC reviews individual applications. Concerns around market volatility and consumer protection remain, prompting Lummis’ call for Congressional action. It remains unclear when the Ether ETFs will begin trading, as further approvals from the SEC are required.
Industry experts have praised the SEC’s approval as a win for crypto. Coinbase Chief Legal Officer Paul Grewal stated that Ethereum is now effectively recognized as a commodity. This belief, long held by the crypto community, is supported by various regulatory bodies, including the Commodity Futures Trading Commission (CFTC) and federal court rulings. The SEC’s approval of Ethereum ETFs further solidifies this stance.
Sigel echoed Grewal’s sentiments, highlighting Ethereum’s decentralized nature as a key factor in its classification as a commodity. This recognition by regulatory bodies and the SEC’s approval signal a significant step for the crypto industry and marks an important moment for Ethereum’s legitimacy in the financial market.
ConsenSys Criticizes SEC Despite Ether ETF Approval
In related developments, ConsenSys has voiced concerns over the SEC’s regulatory practices despite welcoming the Ethereum ETF approval. The Ethereum developers expressed mixed reactions following the approval, with ConsenSys criticizing the regulatory watchdog. They argue that the SEC’s inconsistent regulatory approach signifies trouble in regulating digital assets.
ConsenSys further slammed the agency, stating that this move unfairly targets the cryptocurrency market while hindering innovation in the digital asset space. The company’s criticism highlights ongoing tensions between the crypto industry and regulatory bodies.
Also Read: Michael Saylor Dragged For Failed Spot Ethereum ETF Prediction
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