A bipartisan group of US lawmakers urged the Securities and Exchange Commission (SEC) to approve spot Ethereum exchange-traded funds (ETFs) in a letter sent on May 22. The letter, signed by Financial Committee Vice Chairman Rep. French Hill, House Majority Whip Tom Emmer, and Representatives Josh Gottheimer, Mike Flood, and Wiley Nickel, called for the SEC to apply the same principles used for spot Bitcoin ETFs to Ethereum ETF applications to demonstrate regulatory consistency.
The lawmakers emphasized that the launch of Bitcoin ETPs provided a regulated and transparent investment vehicle for American investors, and approving an Ethereum ETF would reinforce the SEC’s commitment to investor protection and acceptance of modern financial markets.
The legislators also highlighted the SEC’s market surveillance and enforcement measures to mitigate concerns about market manipulation, while transparency and reporting requirements would enable investors to make informed decisions.
The push for Ethereum ETFs comes at a time of shifting regulatory landscape for the crypto industry in the US. Recently, bills have been passed to create regulatory clarity for the emerging industry.
SEC Chair Gary Gensler hinted that a decision on the pending ETH ETF applications is imminent, advising market observers to “stay tuned.” Industry experts anticipate the approval of these financial instruments on May 23.
After minimal engagement for weeks, the SEC asked exchanges supporting the ETF applications to refile their 19b-4 forms with standardized language. The SEC also seems to be engaging directly with potential issuers, as companies like Grayscale have filed updated S-1 forms this week.
