Fun

Coinbase fires back at senators asking SEC to halt crypto ETF approvals

News Feed - 2024-03-15 12:03:45

Tom Mitchelhill5 hours agoCoinbase fires back at senators asking SEC to halt crypto ETF approvalsCoinbase chief legal officer Paul Grewal says there’s direct evidence that Ether’s futures and spot markets are just as correlated as Bitcoin, suggesting the senator’s letter is misguided.4926 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCoinbase chief legal officer Paul Grewal has slammed a letter by two United States senators urging the SEC to more tightly regulate Bitcoin ETFs and reject any further crypto ETF applications.


In a March 15 post to X, Grewal criticized the senator’s recent March 11 letter — which had claimed the approval of further crypto ETFs beyond Bitcoin would expose investors to “enormous risks.”


“Respectfully Senators, the evidence points exactly the opposite way,” said Grewal in response.Grewal said the senators’ letter contained several falsehoods. Source:Paul Grewal on X


Grewal explained that the market for many cryptocurrencies smaller than Bitcoin, notably Ether (ETH), demonstrated quality metrics that “exceed even the largest traded equities.”


“ETH’s spot market is deep and liquid– only two S&P 500 stocks have higher notional dollar trading volume,” added Grewal.


Grewal added there was direct evidence that Ether’s futures and spot markets were just as correlated as Bitcoin’s.“When compared to Bitcoin, ETH’s future and spot market demonstrate EXACTLY the same type of high and consistent correlation that would enable market surveillance.”


On March 9, Coinbase and crypto asset manager Grayscale met with SEC officials to discuss a rule change for the launch of spot Ether ETFs, where Coinbase argued that if the SEC approved Bitcoin ETFs, they should approve Ether ETFs as well.


Some analysts have suggested that Grayscale may be using its futures ETF application as a “trojan horse” to corner the SEC into approving its spot Ether ETF.


Several industry pundits, including VB Capital general partner Scott Johnson and Bloomberg ETF analyst Eric Balchunas, have predicted the SEC is looking to reject the pending ETH ETFs on the grounds of “correlation” — the difference between the price of spot and futures.


Nate Geraci, the president of the ETF Store said it was clear that Coinbase was now “going all in” on supporting spot Ether ETFs, hinting that conflict between the crypto exchange and the regulator could soon escalate ahead of the May 23 deadline for an ETH ETF decision.Geraci claimed the SEC pushback on Ether ETFs came down to politics. Source: Nate Geraci on X


“None of this is about ‘protecting investors’ It’s all about politics. Sad. It’s all sour grapes b/c investors want exposure to spot btc ETFs,” Geraci said in a follow-up post.


Geraci added it was clear the SEC was gearing up to reject the pending Ether ETF applications on the grounds of correlation, but noted that they had approved Ether futures ETFs.


Related:BlackRock’s Bitcoin ETF sets daily volume record as BTC recoups slump


In the March 11 letter addressed to SEC Chair Gary Gensler, the two democratic senators, Jack Reed and Laphonza Butler, claimed that any further crypto ETF approvals would see investors exposed to risks stemming from “thinly traded” markets rife with fraud and manipulation.


Alongside a series of requests for more stringent regulatory oversight into Bitcoin ETFs, Reed and Butler added that markets for cryptocurrencies smaller than Bitcoin were “far more exposed to misconduct.”


There are currently eight proposed spot Ether ETF applications awaiting approval by the SEC, and there have been hopes that other altcoins could eventually tread a similar path.


Magazine:‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull# Bitcoin# Coinbase# Cryptocurrencies# Law# Government# Ethereum# SEC# ETF# United States# Futures# Regulation# Gary GenslerAdd reactionAdd reactionRead moreBlackRock’s Bitcoin ETF sets daily volume record as BTC recoups slumpSenators pressure SEC’s Gensler not to approve any more crypto ETFsPro-crypto US voters turning to Trump, but don’t trust either party

News Feed

What Will Send Dogecoin Soaring? Analyst Reveals The Key Drivers
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Gareth Jenkinson10 hours agoBitcoin lender Ledn to roll out ETH, USDT interest accountsSpurred on by user requests, Bitcoin lending firm Ledn is rolling out an Ethereum yield product.2161 Total views17 Total sharesListen
Omni Network token falls 55% after airdrop, fake token completely rugs
Jesse Coghlan2 hours agoOmni Network token falls 55% after airdrop, fake token completely rugsOmni Network’s token price has halved just 18 hours after its test net users and some NFT holders were airdropped the token.
Bitmain Unveils 2 Bitcoin Miners With Max Speeds Up to 110TH/s Per Unit
Bitmain Unveils 2 Bitcoin Miners With Max Speeds Up to 110TH/s Per Unit On Thursday, the China-based mining rig manufacturer Bitmain announced the launch of two new Antminer S19
Playing Card Maker Bicycle to Feature Bored Ape #1,227 in Upcoming Collectible Deck
Playing Card Maker Bicycle to Feature Bored Ape #1,227 in Upcoming Collectible Deck Last year, when the non-fungible token (NFT) industry was frothing over, the 137-year-old playin
UK Gambling Commission charges Sorare for unlicensed facilities
Derek Andersen6 hours agoUK Gambling Commission charges Sorare for unlicensed facilitiesThe French website offers NFTs for fantasy sports team competitions and as collectibles. 611 Total views8 Total sharesListen to art
Kraken Ventures Raises $65 Million to Invest in Web3, Defi, Blockchain Startups and Protocols
Kraken Ventures Raises $65 Million to Invest in Web3, Defi, Blockchain Startups and Protocols The independent investment fund led by Kraken alumni that’s focused on early-st
World’s largest Bitcoin miner increased BTC holdings by $124M in July
Zoltan Vardai10 hours agoWorld’s largest Bitcoin miner increased BTC holdings by $124M in JulyMarathon Digital holds over $1.1 billion worth of Bitcoin after the company decided to go full “HODL.”6144 Total views13
Kucoin Hack: $17M Laundered Via Decentralized Exchanges, Blockchain Analysis Firm Claims This Can Still be Traced
Kucoin Hack: $17M Laundered Via Decentralized Exchanges, Blockchain Analysis Firm Claims This Can Still be TracedElliptic says the Kucoin hacker has sold $17.1 million worth of toke
South African Rand Plunges to New 2023 Low Versus the US Dollar
South African Rand Plunges to New 2023 Low Versus the US Dollar Just a few weeks after tapping its best exchange rate versus the greenback in 2023, the South African rand fell to a
SEC Chief: You're 'Sorely Mistaken' if You Think Bitcoin's All Grown Up
U.S. Securities and Exchange Chairman Jay Clayton just delivered a rebuke to cryptocurrency backers, alleging that Bitcoin is unlikely to trade on a major US exchange until it"s much better regulated. Crypto"s Not Ready
Alice Ivey14 hours ago5 peer-to-peer (P2P) lending platforms for borrowers and lendersDiscover five platforms — Aave, Compound, MakerDAO, dYdX and Fulcrum — that are transforming lending and borrowing through decentr