Paul Grewal, Coinbase's Chief Legal Officer, criticized a call by two US senators for the Securities and Exchange Commission (SEC) to increase oversight of Bitcoin ETFs.
Democratic Senators Jack Reed and LaFonza Butler also called on the regulator to reject any future applications for cryptocurrency ETFs. The senators are convinced that all cryptocurrency ETFs other than Bitcoin carry "enormous risks," Cointelegraph reported.
Grewal stated on his X (Twitter) page that "the facts suggest just the opposite."
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The Coinbase representative explained that many altcoins, such as Ethereum, have demonstrated their ability to outperform BTC in some metrics. He noted that such cryptocurrencies could easily become an alternative to the shares of major companies traded on an exchange.
Grewal noted that only two companies in the S&P 500 have a larger notional dollar trading volume than Ethereum.
"Compared to Bitcoin, the ETH futures and spot markets exhibit exactly the same type of high and consistent correlation, which allows for market surveillance," he stressed.
It is worth recalling that on March 9, representatives of Coinbase and Grayscale met with members of the SEC and insisted that Ethereum ETFs should be the next to be approved.
At the same time, some analysts are confident that the SEC will reject requests to approve Ethereum ETFs because of "correlation" – the difference between the spot and futures price of the cryptocurrency.
The head of ETF Store, Nate Geraci, stated that "the SEC's action has nothing to do with investor protection. He is convinced that the whole thing has turned into a political farce."
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