Cryptocurrency fraud and poor regulation could jeopardize ETH ETF approval
The US Securities and Exchange Commission is expected to make a key decision on approval ether exchange-traded funds next week.
But it will likely fail due to the lack of an overarching regulatory framework for all cryptocurrencies, according to Ric Edelman, head of the Digital Assets Council of financial professionals.
“I think there will be another delay, which is not bad news, to be honest,” Edelman told CNBC.ETF margin” this week.
Edelman, an investor and personal finance author, believes there needs to be an emphasis on regulation to protect people from cryptocurrency scams. He noted that current laws are more than half a century old and were not built for digital technology.
“Without the police keeping up, this forces investors to leave the investment advisory community on their own because the community can’t help them because we don’t know what the rules are. And they’re ending up with scams and scams,” he said. “The sad irony is [SEC Chair Gary] Gensler claims to want to protect consumers. But his refusal to write regulations is actually doing more harm than good to consumers.”
Matt Hougan of Bitwise Asset Management is also pushing for new rules.
“The 80-year-old securities law is ill-suited to the 21st century world of digital assets, cryptocurrencies and technology,” said the firm’s chief investment officer. “Ultimately, I think everyone wants the same thing. They want a safe, secure platform where investors are protected and innovation is protected.”
Hougan notes Bitwise has its own app for spot ethereum ETFs and is hopeful about the future.
“We have entered the era of cryptocurrency ETFs. We have seen bitcoin ETF appeared on the market. We have seen the great things they have done for investors – reducing costs, improving regulations, improving safety, security and peace of mind.,” Hougan said. “I think we will achieve that on ethereum as well.”
The two ether ETF proposals submitted by VanEck and ARK Investments/21Shares are is set to be approved or denied this month.
