The US Securities and Exchange Commission is expected to make a key decision on the approval ether exchange-traded funds next week.
However, according to Ric Edelman, head of the Digital Assets Council of Financial Professionals, it is likely to fail because there is no overarching regulatory framework for all cryptocurrencies.
“I think there will be another delay, which honestly isn’t really bad news,” Edelman told CNBC’s “ETF Edge” this week.
Edelman, a personal finance investor and author, believes the focus needs to be on regulations to protect people from crypto scams. He points out that current laws are more than half a century old and are not designed for digital technology.
“Without a police officer on guard, investors will be forced to go into business for themselves and leave the investment advisory community because the community can’t help them because we don’t know the rules. And they get into scams etc scams,” he said. “The sad irony is that [SEC Chair Gary] Gensler claims to want to protect the consumer. But its refusal to regulate is more likely to harm consumers than help them.”
Matt Hougan from Bitwise Asset Management is also pushing for new rules.
“80-year-old securities laws don’t fit neatly into this world of digital assets, crypto and 21st century technology,” said the company’s chief investment officer. “At the end of the day, I think everyone wants the same thing. They wanted a safe platform where investors are protected and innovation is protected.”
Hougan notes that Bitwise has its own application for a spot Ethereum ETF and is optimistic about the future.
“We have entered the ETF era for crypto. We saw that.” Bitcoin ETFs are coming onto the market. “We’ve seen the great things they’ve done for investors — reducing costs, improving regulation, improving safety and peace of mind,” Hougan said. “I think we will do it on Ethereum too.”
The two Ether ETF proposals submitted by VanEck and ARK Investments/21Shares are expected to be approved or rejected this month.
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2024-05-18 15:00:01
www.cnbc.com
