Regulation
Cynthia Lummis calls for clear regulation of crypto after SEC consensus
Approved by the US Securities and Exchange Commission (SEC). Spot ETF on Ethereum has spurred the cryptocurrency industry. Senator Cinzia Lummis (R-WY) urged Congress to establish a clear regulatory framework for the industry. This move signifies a growing acceptance of cryptocurrency as a legitimate asset class, underscoring the need for congressional action.
Cynthia Lummis urges passage of post-SEC crypto regulation
The SEC approval, announced yesterday, paves the way for several Ether-based ETFs on major US exchanges. This follows the SEC’s decision in January to allow Spot Bitcoin ETFS. Analysts believe this could increase investor access and liquidity in the Ethereum market, particularly for institutional investors. Despite the positive news, the price of Ethereum fell from $3,800 to $3,700, highlighting the volatility of the market.
Experts warn that the path to trading these ETFs could take several weeks as the SEC reviews individual applications. Concerns about market volatility and consumer protection remain, prompting Lummis to call for congressional action. It is unclear when Ether ETFs will begin trading, as further SEC approvals are needed.
Industry experts praised the SEC approval as a win for cryptocurrencies. Coinbase Legal Director Paolo GrewaI stated it Ethereum it is now effectively recognized as a commodity. This belief, long held by the crypto community, is supported by various regulatory bodies, including the Commodity Futures Trading Commission (CFTC) and federal court rulings. The SEC’s approval of Ethereum ETFs further strengthens this position.
Sigel echoed Grewal’s sentiments, highlighting Ethereum’s decentralized nature as a key factor in its classification as a commodity. This recognition by regulatory bodies and SEC approval marks a significant step for the cryptocurrency industry and marks an important moment for Ethereum’s legitimacy in the financial market.
ConsenSys Criticizes SEC Despite Ether ETF Approval
In related developments, ConsensSys expressed concern about the SEC’s regulatory practices despite welcoming the approval of the Ethereum ETF. Ethereum developers expressed mixed reactions following the approval, with ConsenSys criticizing the regulatory watchdog. They argue that the SEC’s inconsistent regulatory approach means difficulties in regulating digital assets.
ConsenSys also criticized the agency, saying that this move unfairly targets the cryptocurrency market while hindering innovation in the digital asset space. The company’s criticism highlights ongoing tensions between the cryptocurrency industry and regulators.
Read also: Michael Saylor Dragged For Failed Spot Ethereum ETF Prediction