Bipartisan push for Ethereum ETF gains momentum in Congress.

A bipartisan group of U.S. lawmakers advised the Securities and Exchange Commission (SEC) in a letter on May 22 to approve a spot Ethereum exchange-traded fund (ETF).

Letter signatories included Rep. French Hill, Vice Chair of the Finance Committee, and House Majority Leaders Rep. Tom Emmer, Josh Gottheimer, Mike Flood and Wiley Nickel.

Ethereum ETF

In a letter to SEC Chairman Gary Gensler, lawmakers urged regulators to apply the same principles they used for spot Bitcoin ETFs to Ethereum ETF applications. They argued that this would demonstrate regulatory consistency.

The letter noted that the launch of the Bitcoin ETP provided U.S. investors with a regulated and transparent investment vehicle. It also highlighted the SEC’s commitment to protecting investors and embracing modern financial markets, arguing that approval of the Ethereum ETF would strengthen that commitment.

The lawmakers added:

“The Commission’s actions earlier this year appear to be a natural progression that not only demonstrates consistency in the Commission’s application of the standards, but also confirms the legal basis that prompted the Bitcoin ETP decision.”

Lawmakers also said the SEC’s market surveillance and enforcement actions would alleviate concerns about market manipulation, and that transparency and reporting requirements would allow investors to make informed decisions.

Support for the Ethereum ETF comes amid a changing regulatory environment for cryptocurrencies in the United States. The industry has recently become a center of conversation and debate, leading to legislation being passed to ensure regulatory clarity for the emerging industry.

‘Please keep watching’

The SEC Chairman hinted that a decision on the pending ETH ETF application is imminent, advising market watchers to “stay tuned.”

Some industry experts expect approval of these financial products later today, May 23rd.

After several weeks of minimal engagement, the SEC recently asked exchanges that support ETF applications to refill Form 19b-4 in standardized language. Additionally, the SEC appears to be working directly with potential issuers, as companies like Grayscale filed updated Form S-1s this week.

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