Paul Grewal, the Chief Legal Officer at Coinbase, has actually stepped forward to slam a letter composed by 2 U.S. senators advising the Securities and Exchange Commission (SEC) to enforce more stringent guidelines on Bitcoin exchange-traded funds and avoid authorizing any additional cryptocurrency ETF applications.
In a March 15 X thread, he challenges the assertions of senators Jack Reed and Laphonza Butler and safeguards the requirement of broadening the ETF market to consist of properties beyond Bitcoin.
Grewal Advocates for Ethereum ETFs
“Respectfully, Senators, the proof points precisely the opposite method,” he specified.
Respectfully Senators, the proof points precisely the opposite method. We have actually discussed our analysis with SEC personnel and would enjoy to do the exact same for you and any other policy makers who have concerns. 1/7 https://t.co/juFj4QyDnj
— paulgrewal.eth (@iampaulgrewal) March 15, 2024
Grewal highlighted the effectiveness of numerous digital property products beyond Bitcoin, pointing out Ethereum (ETH) as an example, specifying its market liquidity and metrics equal even those of significant S&P 500 stocks.
He worried that Ethereum shows exactly the exact same level of strong and constant connection, which appropriates for making it possible for market monitoring when compared to Bitcoin, both in its future and area markets.
The Coinbase executive likewise referenced a current remark letter sent to the SEC, offering legal, technical, and financial reasoning for the approval of an Ethereum Exchange-Traded Product (ETP).
The Senator’s Letter
In their March 11 letter, Democratic senators Jack Reed and Laphonza Butler refuted more approvals of crypto ETFs by the SEC, caution of the threats postured to financiers by very finely traded markets prone to scams and control.
“Retail financiers would deal with massive dangers from ETPs referencing very finely traded cryptocurrencies or cryptocurrencies whose rates are specifically prone to pump-and-dump or other deceptive plans,” checked out the letter.
The senators highlighted the requirement for care, prompting the SEC to avoid permitting current approvals of area Bitcoin ETFs to set a precedent for future ones, mentioning BTC’s fairly recognized and inspected market compared to other cryptocurrencies.
NEW: Rhode Island Senator @SenJackReed and California Senator @Senlaphonza have actually penned a letter to @GaryGensler requesting for the firm to action in to make sure broker-dealers are offering financiers the appropriate disclosures around the $BTC ETFs (which they state need to be appropriately referred … pic.twitter.com/xwlfu7kx3F
— Eleanor Terrett (@EleanorTerrett) March 14, 2024
Reed and Butler likewise required boosted regulative analysis on area Bitcoin ETF items, advising for particular actions to be required to secure financier interests, consisting of increased oversight of brokers and consultants.
They revealed doubt relating to the viability of other cryptocurrencies to support involved ETPs, mentioning inadequate trading volumes and market stability. They likewise questioned the probability of futures markets for other cryptocurrencies displaying the required connection with area markets to assist in reliable market monitoring for determining and avoiding bad stars.
Currently, the SEC is examining 8 proposed applications for area Ethereum ETFs,
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