In the midst of growing excitement over the possible approval of a spot Ether (ETH) exchange-traded fund (ETF) in the United States, House lawmakers 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 approval for spot Ether (ETH) ETFs. The lawmakers argued that such an ETF would provide investors with regulated and safer access to ETH.
In the letter, the lawmakers emphasized the importance of maintaining a consistent and fair approach when reviewing future applications for other digital asset-backed ETFs. Although the letter did not specify any digital assets other than Ether, Bloomberg ETF analyst Eric Balchunas noted the mention of “other digital assets” and speculated on the potential for the ETF industry to explore new possibilities.
The cryptocurrency community is eagerly awaiting the SEC’s decision on the approval of an Ether ETF by the end of this month. The community’s optimism has grown as U.S. lawmakers continue to push for the SEC to approve a spot ETH ETF.
On May 22, another group of lawmakers, including the chairman of the House Financial Services Committee Patrick McHenry and subcommittee head Bill Huizenga, demanded that the SEC provide records related to the custody services provider Prometheum. They also expressed dissatisfaction with the SEC’s response to a previous inquiry regarding Ether’s classification as a security rather than a commodity.
Meanwhile, in Hong Kong, regulators are reportedly considering the possibility of enabling staking for spot Ether ETFs, which began trading on April 30, 2024, alongside 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.
In the world of crypto, the SEC is facing a tough battle against the legal firepower of Godzilla and Kong.