Two U.S. Senators Tell SEC 'Don't Approve Altcoin Spot ETFs,' Criticized by ETF Experts

"U.S. Senators Jack Reed (D) and Laphonza Butler (D) sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler on Nov. 11 (local time) stating that the agency should not approve spot ETFs for any coin other than bitcoin," Fox Business reporter Eleanor Terrett reports for X. "The letter states that the market for bitcoin is in serious trouble. "While the bitcoin market has significant vulnerabilities compared to other cryptocurrencies, it is orderly and closely managed and monitored. While bitcoin is subject to fraud and manipulation, the situation is more severe for other cryptocurrencies. Cryptocurrencies other than BTC do not have the trading volumes to support their associated ETPs." BlackRock's review of the ETH spot ETF application is expected to be announced by May 23 (local time). Earlier, MattCorva, General Counsel at ConsenSys, predicted that "the ETH spot ETF could be rejected initially", while Eleanor Terrett, citing sources, reported that "the chances of the SEC approving an ETH spot ETF by May 23 are diminishing".

Meanwhile, "I don't know why U.S. senators sent a letter to the SEC urging them not to approve an altcoin spot ETF, but stood idly by when the ETH futures ETF was under review," Nate Geraci, CEO of ETF Store, a U.S. ETF specialist, told X. "The purpose of their letter is not to protect investors," he said. "The purpose of their letter is not to protect investors. It's about political calculations. Investors want spot ETFs, and that's a tide that can't be turned. The time politicians spend writing letters would be better spent working on real crypto regulation." Previously, U.S. Senators Jack Reed (D) and Laphonza Butler (D) sent a letter to the SEC stating that the agency should not approve spot ETFs for any coin other than bitcoin.