The approval by the U.S. Securities and Exchange Commission (SEC) of a spot Ethereum ETF has created a buzz in the cryptocurrency industry. Senator Cynthia Lummis (R-WY) is calling on Congress to establish a clear regulatory framework for the industry, signaling a growing acceptance of cryptocurrency as a legitimate asset class that requires Congressional action.

Cynthia Lummis Urges Crypto Regulation Post-SEC Approval

The SEC’s recent approval opens the door for Ether-based ETFs to be listed on major U.S. exchanges, following a similar decision in January for spot Bitcoin ETFs. Analysts predict increased investor access and liquidity in the Ethereum market, especially for institutional investors. Despite the positive news, Ethereum’s price experienced a drop from $3,800 to $3,700, demonstrating the market’s volatility.

Experts caution that trading these ETFs may take several weeks as the SEC reviews individual applications. Concerns about market volatility and consumer protection persist, prompting Lummis to urge Congressional action. It remains unclear when the Ether ETFs will officially start trading, pending further approvals from the SEC.

Industry experts consider the SEC’s approval a victory for crypto. Coinbase Chief Legal Officer Paul Grewal believes that Ethereum is now officially recognized as a commodity, a sentiment long held by the crypto community and supported by various regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and federal court rulings. The approval of Ethereum ETFs by the SEC solidifies this classification.

Sigel shares Grewal’s view, emphasizing Ethereum’s decentralized nature as a crucial factor in its classification as a commodity. The recognition from regulatory bodies and the SEC’s approval mark a significant milestone for the crypto industry, establishing Ethereum’s legitimacy in the financial market.

ConsenSys Criticizes SEC Despite Ether ETF Approval

In other news, ConsenSys has raised concerns about the SEC’s regulatory practices despite welcoming the approval of the Ethereum ETF. The Ethereum developers expressed mixed reactions, with ConsenSys criticizing the regulatory agency for its inconsistent approach to regulating digital assets, reflecting ongoing tensions between the crypto industry and regulatory bodies.

ConsenSys also criticized the SEC for unfairly targeting the cryptocurrency market and impeding innovation in the digital asset space. This criticism underscores the challenges faced by the industry in navigating regulatory frameworks.

Also Read: Michael Saylor Dragged For Failed Spot Ethereum ETF Prediction

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• Source: https://cryptoinfonet.com/regulation/cynthia-lummis-urges-clear-crypto-regulation-following-sec-approval-of-spot-ethereum-etf/