COIN - Democratic Senators Urge SEC To Halt Crypto ETP Approvals Over Misleading Crypto Marketing | Benzinga
Two Democratic Senators have taken a stand against the approval of further crypto exchange-traded products (ETPs), citing concerns over retail investor protection.
What Happened: Senators Jack Reed of Rhode Island and Laphonza Butler of California have formally requested the U.S. Securities and Exchange Commission (SEC) to halt the issuance of new crypto ETPs.
Their concerns stem from a FINRA survey revealing that 70% of broker communications with retail investors failed to comply with fair disclosure rules, often misleadingly comparing cryptocurrency to cash or downplaying its risks.
The Senators argue that the current naming convention for Bitcoin exchange-traded funds (ETFs) masks the ...