The U.S. Securities and Exchange Commission is expected to make a decision on approving ether exchange-traded funds next week, but Ric Edelman, head of the Digital Assets Council of Financial Professionals, believes it will likely fail due to a lack of a comprehensive regulatory framework for cryptocurrencies. Edelman emphasizes the need for regulations to protect investors from scams and frauds, pointing out that current laws are outdated and not designed for digital technology. He criticizes SEC Chair Gary Gensler for not writing new regulations, which he believes is harming consumers rather than helping them.
Matt Hougan, chief investment officer at Bitwise Asset Management, also advocates for new rules, stating that 80-year-old securities laws do not align with the digital asset space. He highlights the importance of creating a safe and secure platform for investors while encouraging innovation. Bitwise has its own application for a spot ethereum ETF and Hougan expresses optimism about the future of cryptocurrency ETFs, noting the success of bitcoin ETFs in lowering costs and improving regulation. He believes that the industry will eventually see approval for ether ETFs as well.
The two ether ETF proposals, submitted by VanEck and ARK Investments/21Shares, are awaiting approval or denial this month. Edelman and Hougan both stress the need for regulatory clarity in the cryptocurrency space to protect investors and foster innovation. Despite the challenges posed by outdated laws, both experts are hopeful that the industry will move towards a more regulated and secure environment for crypto investments. As the debate continues around the approval of ether ETFs, stakeholders in the industry are calling for a more robust regulatory framework to guide the growing market.
