Markets
Cynthia Lummis calls for regulatory framework for crypto
The approval of applications for spot Ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) has sent ripples through the cryptocurrency industry. Senator Cynthia Lumis (R-WY) took to Twitter today to seize on the US SEC’s approval of an exchange-traded fund (ETF) for Ether to urge Congress to establish a clear regulatory framework for the industry.
Lumis sees this as a sign of growing acceptance of cryptocurrency as a legitimate asset class. However, his tweet also emphasizes the need for Congressional action to establish a regulatory framework for the industry.
.@SECGovThe approval of a spot ETF for Ether is the latest sign that crypto is being accepted as a mature asset class and underscores the need for Congress to pass a regulatory framework to protect consumers and provide clear rules for the sector.
– Senator Cynthia Lummis (@SenLummis) May 24, 2024
SEC approval, announced yesterday, paves the way for the launch of several Ether-based ETFs on major US exchanges. The approval comes after months of speculation and follows the SEC’s decision in January to allow Bitcoin spot ETFs.
Analysts believe this could increase investor access and liquidity in the Ethereum market, especially for institutional investors seeking regulated exposure to the cryptocurrency. However, some experts warn that the path to trading these ETFs could take several weeks while the SEC reviews individual applications. Furthermore, the recent $100 drop in Ethereum price from $3,800 to $3,700 despite positive news highlights the volatility of the crypto market.
These concerns around market volatility and consumer protection remain, which prompted Lumis’ call for congressional action. It is not yet clear when Ether ETFs will begin trading, as additional SEC approvals are required for individual asset manager applications.