US Senators Jack Reed and Laphonza Butler wrote a letter to the Securities and Exchange Commission (SEC) demanding the company stop approving cryptocurrency ETFs any longer.
Both politicians highlighted that these Assets are dangerous for retail buyers inside the crypto market. Additionally, they stated there are various vulnerabilities due to the dearth of regulation within the business.
The risks of ETFs, in accordance to senators
In the letter, which was addressed to SEC Chairman Gary Gensler, Reed and Butler highlighted that these components are uncovered to fraudulent actions, together with pump-and-dump schemes, inside these markets.
While spot Bitcoin exchange-traded funds have already been accepted and are presently extremely profitable, senators demanded prohibitions hereinafter.
In that sense, they argued that the markets for these various cryptocurrencies are extra inclined to manipulation and fraudulent practicesrequiring a cautious strategy by regulatory authorities.
This is a wake-up name for these buyers who’re anxiously awaiting approval of Ethereum Spot ETFssince this place might delay the admission and even make it by no means occur.
On the opposite hand, the senators referred to as for extra demanding regulatory scrutiny for already accepted BTC ETFs, with the goal of guaranteeing better safety for retail buyers.
