Bipartisan push for Ethereum ETF gains momentum in Congress

A bipartisan group of US lawmakers advised the Securities and Exchange Commission (SEC) in a May 22 letter to approve spot Ethereum exchange-traded funds (ETFs).

The letter signatories included Financial Committee Vice Chairman Rep. French Hill, House Majority Whip Tom Emmer, and Representatives Josh Gottheimer, Mike Flood, and Wiley Nickel.

Ethereum ETF

In the letter addressed to SEC Chair Gary Gensler, the lawmakers urged the regulator to apply the same principles it used for spot Bitcoin ETFs to Ethereum ETF applications. They argued that this would demonstrate regulatory consistency.

The letter noted that the launch of Bitcoin ETPs provided a regulated and transparent investment vehicle for American investors. It also highlighted the SEC’s commitment to investor protection and acceptance of modern financial markets — arguing that approving an Ethereum ETF would reinforce this commitment.

The lawmakers added:

“With the Commission’s actions earlier this year, it seems a natural progression that would not only demonstrate consistency in the Commission’s application of its standards but would also affirm the legal reasoning that facilitated the spot Bitcoin ETPs decision.”

The legislators also stated that the SEC’s market surveillance and enforcement measures would mitigate concerns about market manipulation and that transparency and reporting requirements would enable investors to make informed decisions.

The support for Ethereum ETFs comes amid a shifting regulatory landscape for crypto in the US. Recently, the industry has been at the center of conversations and debates, leading to the passage of bills to create regulatory clarity for the emerging industry.

‘Stay tuned’

The SEC Chair hinted that a decision on the pending ETH ETF applications is imminent, advising market observers to “stay tuned.”

Several industry experts anticipate the approval of these financial instruments later today, on May 23.

After weeks of minimal engagement, the SEC recently asked exchanges supporting the ETF applications to refile their 19b-4 forms with standardized language. Additionally, the SEC seems to be engaging directly with potential issuers, as companies like Grayscale have filed updated S-1 forms this week.

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