{"id":404662,"date":"2024-03-15T12:31:20","date_gmt":"2024-03-15T12:31:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=404662"},"modified":"2024-03-15T13:08:30","modified_gmt":"2024-03-15T13:08:30","slug":"us-senators-push-sec-to-reject-other-crypto-etf-proposals-casting-doubt-on-ethereum-etf-approval-chances","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/us-senators-push-sec-to-reject-other-crypto-etf-proposals-casting-doubt-on-ethereum-etf-approval-chances\/","title":{"rendered":"US senators push SEC to reject other crypto ETF proposals, casting doubt on Ethereum ETF approval chances"},"content":{"rendered":"<p>The chances of approval for the pending spot <a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">Ethereum<\/a> exchange-traded fund (ETF) applications this May are strained as two US Senators urged the Securities and Exchange Commission (SEC) to reject other crypto ETF proposals.<\/p>\n<p>In the March 11 letter to SEC Chair Gary Gensler, Senators Jack Reed and Laphonza Butler advised the financial regulator to tighten its scrutiny of <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> ETFs.<\/p>\n<h2>Lawmakers urge SEC to halt other crypto ETF approvals<\/h2>\n<p>The lawmakers raised concerns about approving additional crypto ETFs beyond Bitcoin, citing potential risks for retail investors.<\/p>\n<p>They argued that other cryptocurrencies, like Ethereum, lack sufficient trading volumes and integrity to support related ETPs. Additionally, they doubt that futures markets for these cryptocurrencies will closely correlate with spot markets, making it challenging to conduct effective market surveillance and prevent fraudulent activities.<\/p>\n<p>They <a href=\"https:\/\/x.com\/AlexanderGrieve\/status\/1768373756169261076?s=20\">added<\/a>:<\/p>\n<blockquote><p>&#8220;The SEC should strictly limit the precedential application of these approvals. While the bitcoin market has displayed serious weaknesses, it is nonetheless far more established and scrutinized than the market for any other cryptocurrency. However vulnerable Bitcoin may be to fraud and manipulation, markets for other cryptocurrencies are far more exposed to misconduct.&#8221;<\/p><\/blockquote>\n<p>As such, they concluded that the financial regulator should protect retail investors &#8220;from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose prices are especially susceptible to pump-and-dump or other fraudulent schemes.&#8221;<\/p>\n<p>The lawmakers' letter arrived when Bloomberg analysts significantly <a href=\"https:\/\/cryptoslate.com\/analysts-lower-odds-of-ethereum-etf-approval-to-35\/\">lowered<\/a> the probability of a spot Ethereum ETF approval to 35%.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/people\/eric-balchunas\/\">Eric Balchunas<\/a>, Bloomberg's Senior ETF Analyst, <a href=\"https:\/\/twitter.com\/EricBalchunas\/status\/1768403892218331603?t=8bvmKoYCs87CSuKca2AW6Q&s=19\">suggested<\/a> that the <a href=\"https:\/\/cryptoslate.com\/insights\/net-680-million-flows-into-bitcoin-etfs-as-grayscale-outflows-tick-back-up-to-276-million\/\">success of the Bitcoin ETFs<\/a> might have unsettled some politicians, contributing to the pessimism surrounding the approval of spot ETH ETFs.<\/p>\n<h2>SEC could face lawsuits<\/h2>\n<p><a href=\"https:\/\/cryptoslate.com\/people\/paul-grewal\/\">Paul Grewal<\/a>, the legal chief at <a href=\"https:\/\/cryptoslate.com\/companies\/coinbase\/\">Coinbase<\/a>, <a href=\"https:\/\/x.com\/iampaulgrewal\/status\/1768446993846743142?s=20\">highlighted<\/a> the potential for significant <a href=\"https:\/\/cryptoslate.com\/coinbase-challenges-sec-in-court-over-arbitrary-and-capricious-rulemaking-rejection\/\">legal conflicts<\/a> should the SEC decide to decline the pending Ethereum ETF applications.<\/p>\n<p>Grewal stressed that numerous digital asset commodities, including Ethereum, boast <a href=\"https:\/\/cryptoslate.com\/coinbase-backs-grayscales-ethereum-etf-bid-spotlighting-eth-as-a-commodity\/\">market quality metrics<\/a> surpassing even the most substantial traded equities.<\/p>\n<p>According to him:<\/p>\n<blockquote><p>&#8220;When compared to bitcoin, ETH\u2019s future and spot market demonstrate EXACTLY the same type of high and consistent correlation that would enable market surveillance.&#8221;<\/p><\/blockquote>\n<p>Consequently, Grewal argued that the SEC's refusal of an Ethereum ETF application would be grounded in flawed reasoning, given the robust market performance exhibited by Ethereum and similar digital assets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The chances of approval for the pending spot Ethereum exchange-traded fund (ETF) applications this May are strained as two US Senators urged the Securities and Exchange Commission (SEC) to reject other crypto ETF proposals. In the March 11 letter to SEC Chair Gary Gensler, Senators Jack Reed and Laphonza Butler advised the financial regulator to [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":404672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,78665,77968,11],"tags":[72190],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US senators push SEC to reject other crypto ETF proposals, casting doubt on Ethereum ETF approval chances<\/title>\n<meta name=\"description\" content=\"US Senators advise the Securities and Exchange Commission (SEC) against approval of Ethereum and other crypto ETFs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/us-senators-push-sec-to-reject-other-crypto-etf-proposals-casting-doubt-on-ethereum-etf-approval-chances\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US senators push SEC to reject other crypto ETF proposals, casting doubt on Ethereum ETF approval chances\" \/>\n<meta property=\"og:description\" content=\"US Senators advise the Securities and Exchange Commission (SEC) against approval of Ethereum and other crypto ETFs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/us-senators-push-sec-to-reject-other-crypto-etf-proposals-casting-doubt-on-ethereum-etf-approval-chances\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-15T12:31:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-15T13:08:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/03\/ethereum-etf-approval.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/us-senators-push-sec-to-reject-other-crypto-etf-proposals-casting-doubt-on-ethereum-etf-approval-chances\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/us-senators-push-sec-to-reject-other-crypto-etf-proposals-casting-doubt-on-ethereum-etf-approval-chances\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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