Senators Target Bitcoin ETPs, Cast Doubt on Ether ETF Approval

Senators Jack Reed and Laphonza Butler have recently taken a significant stance against the proliferation of crypto exchange-traded products (ETPs), specifically targeting Bitcoin (BTC) spot products. In a letter to the Securities and Exchange Commission (SEC), they urged the agency to block any further crypto ETPs and to impose stringent examinations and reviews on brokers and advisers recommending BTC ETPs. This move has sparked a debate on the SEC's independence as a regulator and its approach towards cryptocurrency. Critics argue that the senators' actions reflect a broader skepticism towards crypto within certain political circles, potentially influencing the SEC's future decisions on crypto ETPs, including the anticipated approval of an Ether spot ETF. A FINRA survey highlighted concerns, showing that 70% of broker communications might mislead investors about the risks of cryptocurrency, breaching disclosure rules. Meanwhile, the odds of an Ether spot ETF approval by the end of May have dropped to 28%, reflecting the growing pessimism in the market. Paul Grewal of Coinbase countered volatility worries, emphasizing ether's stability.