US Senators Urge SEC to Reject Further Crypto ETP Approvals

Citing concerns over misleading marketing and investor risks, Senators Jack Reed and Laphonza Butler call for a halt on future crypto fund approvals.

Two US Senators have expressed concerns to the SEC about the marketing of spot bitcoin ETFs and the potential approval of ether ETFs.
They highlight a FINRA report indicating that 70% of crypto-related communications to investors may violate disclosure rules.
The senators argue that the crypto market, especially beyond bitcoin, is too susceptible to fraud and manipulation for further ETP approvals.
Despite SEC's consideration of ether ETF applications, the senators emphasize the need for strict scrutiny and limited precedential application.
The debate intensifies as the SEC delays ruling on proposed ether ETFs, with industry observers expecting a decision in May.