The US Securities and Exchange Commission is expected to make a key approval decision. ether ETFs next week.
But it will likely fail due to the lack of a comprehensive regulatory framework for all cryptocurrencies, according to Rick Edelman, head of the Financial Professionals Council on Digital Assets.
“I think there’s going to be another delay, and that’s honestly not that bad news,” Edelman said on CNBC’s “ETF Edge” this week.
Edelman, an investor and personal finance author, believes there needs to be a focus on regulations to protect people from cryptocurrency scams. He notes that current laws are more than half a century old and are not designed for digital technology.
“Without any police on the ground, it forces investors to act on their own, outside of the investment advisory community, because the community can’t help them because we don’t know what the rules are. fraud,” he said. “The sad irony is that [SEC Chair Gary] Gensler says he wants to protect the consumer. But his refusal to write the rules actually hurts the consumer more than it helps.”
Matt Hougan of Bitwise Asset Management is also pushing for new rules.
“80-year-old securities laws do not fit into this world of digital assets, cryptocurrencies and 21st century technologies,” said the firm’s chief investment officer. “Ultimately, I think everyone wants the same thing. They wanted a safe, trusted platform where investors are protected and innovation is protected.”
Hougan notes that Bitwise has its own Spot ETF app and is hopeful for the future.
“We have entered the era of cryptocurrency ETFs. We saw bitcoin ETFs are entering the market. We’ve seen what great things they’ve done for investors—lowering costs, improving regulation, improving safety and peace of mind,” Hougan said. “I think we will achieve this on Ethereum as well.”
Two ether ETF proposals, submitted by VanEck and ARK Investments/21Shares, are set to be approved or rejected this month.
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