The U.S. Securities and Exchange Commission is expected to make a key decision on approval of the Ether exchange-traded fund next week.
However, the plan is likely to fail due to the lack of a comprehensive regulatory framework for all cryptocurrencies, according to Rick Edelman, president of the Digital Asset Council of Financial Professionals.
“I think it's going to be postponed again, but frankly, it's not that bad news,” Edelman told CNBC's “ETF Edge” this week.
Edelman, an investor and personal finance author, believes there needs to be a focus on regulation to protect people from cryptocurrency scams. He points out that the current law is more than half a century old and was not designed for digital technology.
“With no police, investors are forced 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. And they become involved in fraud and crime,” he said. “The sad irony is that [SEC Chair Gary] Gensler insists he wants to protect consumers. But his refusal to create regulations is actually hurting consumers more than helping them. ”
Matt Hogan of Bitwise Asset Management is also pushing for the new rules.
“Eighty-year-old securities laws don't fit neatly into the world of digital assets, cryptocurrencies, and 21st century technology,” the company's chief investment officer said. “Ultimately, I think everyone wants the same thing: They want a safe and secure platform where investors are protected and innovation is protected.”
Hogan said Bitwise has its own application for the Spot Ethereum ETF and is excited about the future.
“We have entered the ETF era of cryptocurrencies. We have seen Bitcoin ETFs come to market. Lower costs, improved regulation, some sort of improved safety, security, peace, etc. “In my mind, we've seen Bitcoin ETFs do great things for investors,” Hogan said. “I think we can get there with Ethereum.”
Two Ether ETF proposals submitted by VanEck and ARK Investments/21Shares are expected to be approved or rejected this month.
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