Better Markets, a non-profit focused on public interest in financial markets, criticized the SEC’s approval of Spot Ethereum ETFs. Benjamin Schiffrin, Director of Securities Policy, labeled the move as a “historic mistake” that would increase investor risks in the volatile crypto industry.
This decision follows SEC’s approval of rule changes for listing and trading Spot Ether ETPs, raising concerns over recent crypto fraud cases. Schiffrin cited the indictment of two brothers for exploiting the Ethereum blockchain to fraudulently gain millions. He emphasized the volatility of Ether and potential threats to retail investors and the financial system.
Schiffrin also linked the risks to the legal troubles of prominent figures like Sam Bankman-Fried and Binance’s CZ. Despite backlash from figures like ETF Prime host Nate Geraci, who noted an unprecedented shift in the SEC’s stance on crypto, the critique highlights the strategic importance of regulatory caution in digital asset markets.
