tl;dr
Coinbase Chief Legal Officer, Paul Grewal, challenged two U.S. senators who advised SEC Chair Gary Gensler not to approve additional crypto ETFs. The senators expressed concerns about risks these ETFs pose to retail investors, but Grewal countered their claims, stating that digital assets demonstrat...
Coinbase Chief Legal Officer, Paul Grewal, challenged two U.S. senators who advised SEC Chair Gary Gensler not to approve additional crypto ETFs. The senators expressed concerns about risks these ETFs pose to retail investors, but Grewal countered their claims, stating that digital assets demonstrate market quality metrics. This ongoing debate follows the successful performance of spot Bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Trust, since their approval in January.
In a letter to the SEC Chair, Democrat senators Jack Reed and Laphonza Butler raised issues about the risks associated with crypto ETFs for retail investors. They believe these ETFs will expose investors to thinly traded markets susceptible to fraud and manipulation. However, Coinbase’s Grewal countered these concerns, arguing that many digital asset commodities, not just Bitcoin, demonstrate market quality metrics that exceed those of even the largest traded equities. He also emphasized how the spot market for other cryptocurrencies demonstrates high and consistent correlation enabling market surveillance, countering the senators’ claims that these markets are more prone to misconduct. The ongoing debate underscores the need for continued research and regulatory oversight in the cryptocurrency market.
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