Cynthia Lummis calls for a regulatory framework for cryptocurrencies

The U.S. Securities and Exchange Commission’s (SEC) approval of exchange-traded fund (ETF) applications has caused a stir in the cryptocurrency industry. Senator Cynthia Lumis (R-WY) took to Twitter today to use the U.S. SEC’s approval to create a Spot Exchange Traded Fund (ETF) for Ether to urge Congress to establish a clear regulatory framework for the industry.

Lumis sees this as a sign of growing acceptance of cryptocurrency as a legal asset class. However, her tweet also highlights the need for congressional action to establish a regulatory framework for the industry.

.@SECGovCongress’s approval of a spot ETF for Ether is the latest sign that cryptocurrencies are being accepted as a mature asset class and underscores the need for Congress to adopt a regulatory framework to protect consumers and provide clear rules of operation for the industry.

— Senator Cynthia Lummis (@SenLummis) May 24, 2024

The SEC approval announced yesterday paves the way for the launch of several ether-based ETFs on major U.S. exchanges. The approval comes after months of speculation and follows the SEC’s January decision to allow cash Bitcoin ETFs.

Analysts believe this could increase investor access and liquidity in the Ethereum market, especially for institutional investors seeking regulated exposure to the cryptocurrency. Some experts warn, however, that the path to trading these ETFs could take several weeks as the SEC reviews individual applications. Additionally, Ethereum’s recent $100 price drop from $3,800 to $3,700 despite positive news highlights the cryptocurrency market’s volatility.

Such concerns about market volatility and consumer protection remain, prompting Lumis to call on Congress to take action. It is still unclear when the ETFs will begin trading, as individual applications from asset managers require further SEC approvals.

Also Read: Cryptocurrency Markets Surge After Approval of ETH ETFs