A bipartisan group of members of the House of Representatives has written a letter to Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), urging him to approve spot Ether (ETH) exchange-traded products (ETPs). The letter, signed by Reps. French Hill (R-AR), Josh Gottheimer (D-NJ), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Mike Flood (R-NE), argues that approving spot ETH products would be consistent with the SEC’s standards and provide full protection for investors under federal securities law. The letter also calls for the same principles applied to spot Bitcoin ETPs to be applied to pending Ether ETP applications. The approval of spot ETH ETPs has been eagerly anticipated by the crypto community, especially after the SEC approved spot Bitcoin ETPs in January. According to Bloomberg ETP analyst James Seyffart, the chances of spot ETH ETP approval this week are around 75%. The letter from the congressmen comes at a time when there is increasing momentum for spot ETH ETPs, despite speculation that the SEC may push back against their approval. The SEC has faced criticism in Congress for its regulation-by-enforcement approach, and recent developments suggest a potentially beneficial legislative pushback on the SEC’s treatment of digital assets.
