U.S. Securities and Exchange Commission expected to make key approval decision ether exchange-traded funds next week.
But it will likely fail due to the lack of a comprehensive regulatory framework for all cryptocurrencies, according to Ric Edelman, head of the Digital Assets Council of Financial Professionals.
“I think there’s going to be another delay, which, frankly, isn’t really bad news,” Edelman told CNBC’s “ETF Edge” this week.
Edelman, an investor and author on personal finance, believes there needs to be an emphasis on regulations to protect people from crypto scams. He notes that current laws are more than half a century old and are not designed for digital technology.
“Without any cops on the ground, it forces investors to fend for themselves outside of the investment advisor community because the community can’t help them because we don’t know what the rules are. And they end up in scams and frauds,” he said. “The sad irony is that (SEC Chairman Gary) Gensler claims to want to protect the consumer. But his refusal to write regulations actually harms the consumer rather than helps them.”
Matt Hougan of Bitwise Asset Management is also pushing for new rules.
“80-year-old securities laws don’t fit neatly into this world of digital assets, crypto and 21st century technology,” said the company’s chief investment officer. “At the end of the day, I think everyone wants the same thing. They wanted a safe and secure platform where investors are protected and innovation is protected.”
Hougan notes that Bitwise has its own application for an Ethereum spot ETF and is hopeful for the future.
“We have entered the era of ETFs for crypto. We have seen the bitcoin ETFs are coming to market. We’ve seen the great things they’ve done for investors: reducing costs, improving regulation, improving safety, security and peace of mind,” Hougan said. “I think we’ll get there on Ethereum.”
The two Ether ETF proposals, submitted by VanEck and ARK Investments/21Shares, are expected to be approved or denied this month.
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