Ethereum

Block

Gary

Capitol

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In a notable development on Capitol Hill, Senators Jack Reed and Laphonza Butler have officially <a href="https://twitter.com/i/bookmarks?post_id=1768373756169261076" rel="noopener noreferrer nofollow">expressed</a> their concerns to the Securities and Exchange Commission (SEC) over the marketing and regulatory treatment of Bitcoin exchange-traded products (ETPs).&nbsp;
In a recent letter to SEC Chairman Gary Gensler, the senators stressed a need for stringent review of communications around Bitcoin ETPs and urged the commission to reconsider approval of additional cryptocurrency ETFs due to potential risks they pose to retail investors.
<h2 id="safety-concerns">Safety concerns</h2>
The Senators’ correspondence emphasized that Bitcoin ETPs, unlike traditional funds, do not fall under the Investment Company Act of 1940's rigorous structural protections. This includes essential investor safeguards such as fiduciary duties and restrictions on harmful practices.&nbsp;
The letter calls for the SEC to intensify the scrutiny of brokers’ and advisors’ communications and to ensure that cryptocurrency ETPs are not misleadingly marketed as ETFs, which could imply unwarranted security to investors.
The key difference is that ETFs offer investors protections like fiduciary duties and limits on leverage. ETPs, however, do not always receive these protections. The senators' letter notes this difference, pointing out that Bitcoin ETPs lack the stringent regulations that ETFs have.&nbsp;
Reed and Butler expressed that the SEC's current regulatory approach to Bitcoin ETFs could expose retail investors to fraud and manipulation.&nbsp;
They stressed that <a href="https://u.today/sec-scores-big-win-against-ripple" rel="noopener noreferrer nofollow">the SEC</a> has a responsibility to ensure that investment advisers who recommend cryptocurrency ETPs act in the best interest of their clients, as mandated by SEC rules.&nbsp;
The letter requests the SEC to undertake specific steps to protect investors from these emerging risks, including the proposal to preclude further ETPs tied to other, potentially less stable cryptocurrencies.
<h2 id="ethereum-etfs-odds-plunge">Ethereum ETFs odds plunge</h2>
As <a href="https://u.today/ethereum-etf-approval-odds-plummet-heres-why" rel="noopener noreferrer nofollow">reported by U.Today</a>, market sentiment indicates a declining probability of the SEC approving an Ethereum ETF, with odds now standing at just 24%.
Legal expert Jake Chervinsky expresses a bearish view on the matter, citing the SEC's lack of interest in cryptocurrency technology and political pressures as key factors influencing their decision-making process.&nbsp;
Chervinsky argued that political considerations and market concerns outweigh the technological merits of cryptocurrencies in the eyes of the SEC.

Senators Urge SEC to Block More Crypto ETFs

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