Senators stated that the US Securities and Exchange Commission (SEC) should stand against more cryptocurrency products.
US Senators Senators jack reed and Laphonza Butler on cryptocurrencies To SEC Chairman Gary Gensler made an open call. In their statement, the SEC stated more cryptocurrency exchange traded product (ETP) Senators emphasized that the approval should not be given and pointed to great risks as the reason.
Cryptocurrency ETP spread Major risks for individual investors because these products carry does not have sufficient and solid liquidity While it is stated that brokers also abuse It was stated that:
Brokers’ communications mistakenly equated cryptocurrency with cash; In others, they made misleading statements about the risks of cryptocurrency. These worrying omissions raise significant concerns that brokers and advisors may now provide retail investors with incomplete and deceptive information about Bitcoin ETPs.
Paul Grewal: The evidence shows the opposite!
The person who responded to the senators’ call to block ETPs on social media was Coinbase chief legal officer Paul Grewal happened.
Paul Grewal stated clearly that the available evidence shows the exact opposite of what the senators claim. Ethereum’s spot market has deep liquidity he pointed out.
Sincerely, senators, the evidence suggests the opposite. We discussed our analysis with SEC staff. We’d be happy to do the same for you and any other policymakers who have questions. Many cryptocurrency commodities, not just Bitcoin, exhibit market quality metrics that exceed even the largest traded stocks. For example, Ethereum’s spot market is deep and liquid; Only two S&P 500 stocks have higher notional dollar trading volume.