oinbase">Coinbase’s Chief Legal Officer Paul Grewal has issued a strong rebuttal to a recent letter from U.S. Senators Jack Reed and Laphonza Butler, which urged the SEC to tighten regulations on itcoin">Bitcoin ETFs and reject further crypto ETF applications.
In his response, Grewal argued that the Ether (ETH) spot market is highly liquid and its futures market correlation is on par with itcoin">Bitcoin. He stated that only two S&P 500 stocks have higher trading volume than Ether’s spot market.
“ETH’s future and spot market demonstrate the same type of high and consistent correlation that would enable robust market surveillance,” Grewal asserted.
oinbase">Coinbase and Grayscale recently met with SEC officials to make a case for approving spot Ether ETFs, if itcoin">Bitcoin ETFs have been green-lighted. Some analysts believe the SEC may reject the pending Ether ETF applications citing correlation issues.
With the SEC decision deadline looming on May 23, the confrontation between crypto firms and the regulator appears to be intensifying over the prospects of expanding crypto investment products.
