Wall Street Veterans and Senators Clash Over Crypto ETF Approvals

Two Democratic senators have urged the SEC chairman to protect investors by avoiding approval of more crypto-based spot exchange-traded funds (ETFs). They expressed concerns about the risks associated with thinly traded markets, fraud, and manipulation if more crypto ETF products are approved. The senators specifically highlighted the potential risks to retail investors, emphasizing that these ETFs are susceptible to fraudulent schemes. The clash amplifies the debate between Wall Street veterans and policymakers on the future of crypto ETFs.