Democrats Ask SEC's Gensler to Block Approval of More Crypto ETPs
Summary
Two Democrat Senators urge SEC to block further crypto exchange-traded products due to risks for retail investors. They cite poor broker disclosure and thin liquidity in major cryptocurrencies. They argue that brokers' communications violate fair disclosure rules and provide misleading information about bitcoin ETPs. The Senators also claim that naming bitcoin ETPs obfuscates important characteristics and that other cryptocurrencies are more susceptible to misconduct. However, Coinbase's chief legal officer argues that ETH has high trading volume and liquidity, countering the Senators' concerns.
