- Two U.S. senators requested SEC Chair Gary Gensler to not approve different crypto ETFs.
- Coinbase’s Paul Grewal mentioned that digital belongings “display market high quality metrics.”
- Senators mentioned that crypto ETFs would pose “monumental dangers” to retail traders.
Coinbase Chief Authorized Officer, Paul Grewal, took a shot at two United States senators who despatched a letter to Securities and Alternate Fee (SEC) Chair, Gary Gensler, asking the company to not approve another crypto exchange-traded funds (ETFs) after spot Bitcoin ETFs.
Within the letter, Democrat senators Jack Reed and Laphonza Butler mentioned that crypto ETFs posed “monumental dangers” to retail traders. The lawmakers consider that if extra crypto ETFs are authorized, traders can be uncovered to “thinly traded” markets which have succumbed to fraud and manipulation.
Retail traders would face monumental dangers from ETPs referencing thinly traded cryptocurrencies or cryptocurrencies whose costs are particularly prone to pump-and-dump or different fraudulent schemes.
However, Coinbase’s Grewal took to social media platform X to emphasise that “the proof factors precisely the alternative means.” In keeping with the manager, many digital asset commodities, and never simply Bitcoin, “display market high quality metrics that exceed even the biggest traded equities.”
Grewal additionally highlighted that, when in comparison with Bitcoin, “ETH’s future and spot market display EXACTLY the identical sort of excessive and constant correlation that might allow market surveillance.”
“Nevertheless weak Bitcoin could also be to fraud and manipulation, markets for different cryptocurrencies are much more uncovered to misconduct,” mentioned the letter.
The Coinbase govt responded to the senators’ declare that the marketplace for different cryptocurrencies just isn’t as well-scrutinized as Bitcoin, which already displayed “severe weak point.”
Spot Bitcoin ETFs have been performing extraordinarily effectively since their approval on January 10. Notably, BlackRock’s iShares Bitcoin Belief (IBIT) has surpassed traders’ expectations, main the pack of the 9 authorized ETFs.
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