A bipartisan group of US lawmakers, including Financial Committee Vice Chairman Rep. French Hill, House Majority Whip Tom Emmer, and Representatives Josh Gottheimer, Mike Flood, and Wiley Nickel, advised the SEC in a May 22 letter to approve spot Ethereum exchange-traded funds (ETFs).

The lawmakers urged SEC Chair Gary Gensler to apply the same principles used for spot Bitcoin ETFs to Ethereum ETF applications, emphasizing regulatory consistency. They highlighted that Bitcoin ETPs have provided a regulated, transparent investment option for Americans and reinforced the SEC’s commitment to investor protection and modern financial markets. Approving an Ethereum ETF would further this commitment.

The letter argued that the SEC's prior actions set a precedent that should naturally extend to Ethereum ETFs, affirming the legal reasoning behind the spot Bitcoin ETPs decision. The lawmakers also noted that the SEC's market surveillance and enforcement measures would address concerns about market manipulation, while transparency and reporting requirements would help investors make informed decisions.

Support for Ethereum ETFs comes amid evolving US crypto regulations, with recent legislative efforts aimed at providing regulatory clarity for the industry.

SEC Chair Gary Gensler hinted that a decision on the pending ETH ETF applications is imminent, advising observers to "stay tuned." Industry experts expect approval later today, May 23. The SEC recently requested exchanges to refile their 19b-4 forms with standardized language and appears to be engaging directly with potential issuers, as companies like Grayscale have filed updated S-1 forms this week.