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Paul Grewal, the Chief Authorized Officer at Coinbase, has come ahead to criticize a letter written by two U.S. senators urging the Securities and Alternate Fee (SEC) to impose stricter laws on Bitcoin exchange-traded funds and chorus from approving any additional cryptocurrency ETF functions.
In a March 15 X thread, he challenges the assertions of senators Jack Reed and Laphonza Butler and defends the need of increasing the ETF market to incorporate belongings past Bitcoin.
Grewal Advocates for Ethereum ETFs
“Respectfully, Senators, the proof factors precisely the other means,” he acknowledged.
Grewal highlighted the robustness of assorted digital asset commodities past Bitcoin, citing Ethereum (ETH) for example, stating its market liquidity and metrics rival even these of main S&P 500 shares.
He stressed that Ethereum reveals exactly the identical degree of robust and constant correlation, which is appropriate for enabling market surveillance when in comparison with Bitcoin, each in its future and spot markets.
The Coinbase government additionally referenced a latest remark letter submitted to the SEC, offering authorized, technical, and financial rationale for the approval of an Ethereum Alternate-Traded Product (ETP).
The Senator’s Letter
Of their March 11 letter, Democratic senators Jack Reed and Laphonza Butler argued in opposition to additional approvals of crypto ETFs by the SEC, warning of the dangers posed to buyers by thinly traded markets vulnerable to fraud and manipulation.
“Retail buyers would face monumental dangers from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose costs are particularly vulnerable to pump-and-dump or different fraudulent schemes,” learn the letter.
The senators emphasised the necessity for warning, urging the SEC to chorus from permitting latest approvals of spot Bitcoin ETFs to set a precedent for future ones, citing BTC’s comparatively established and scrutinized market in comparison with different cryptocurrencies.
Reed and Butler additionally known as for enhanced regulatory scrutiny on spot Bitcoin ETF merchandise, urging for particular steps to be taken to safeguard investor pursuits, together with elevated oversight of brokers and advisors.
They expressed doubt concerning the suitability of different cryptocurrencies to assist related ETPs, citing inadequate buying and selling volumes and market integrity. Additionally they questioned the probability of futures markets for different cryptocurrencies exhibiting the mandatory correlation with spot markets to facilitate efficient market surveillance for figuring out and stopping dangerous actors.
Presently, the SEC is reviewing eight proposed functions for spot Ethereum ETFs, with expectations that different altcoins could comply with swimsuit sooner or later.
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