Regulation
Cynthia Lummis calls for clear crypto regulation after SEC green light
The approval by the United States Securities and Exchange Commission (SEC) of Ethereum Spot ETF has stirred up the cryptocurrency industry. Senator Cynthia Lummis (R-WY) urged Congress to establish a clear regulatory framework for the industry. The move signifies growing acceptance of cryptocurrency as a legitimate asset class, highlighting the need for congressional action.
Cynthia Lummis Urges Crypto Regulation After SEC Approval
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 to the Ethereum market, particularly for institutional investors. Despite the positive news, Ethereum price rose from $3,800 to $3,700, highlighting market volatility.
Experts warn that trading these ETFs could take several weeks while the SEC reviews individual applications. Concerns about market volatility and consumer protections remain, prompting Lummis to call for congressional action. It is still unclear when Ether ETFs will begin trading, as additional SEC approvals are required.
Industry experts hailed the SEC approval as a victory for crypto. Coinbase General Counsel Paul GrewaI declared that Ethereum 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 regulators and approval from the SEC marks an important milestone for the crypto industry and marks an important moment for Ethereum’s legitimacy in the financial market.
ConsenSys criticizes SEC despite approval of Ether ETF
In related developments, ConsenSys has expressed concerns about the SEC’s regulatory practices despite 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 further criticized the agency, stating that the move unfairly targets the cryptocurrency market while hindering innovation in the digital asset space. Criticism of the company highlights ongoing tensions between the crypto industry and regulators.
Read also: Michael Saylor dragged for failed Spot Ethereum ETF prediction