Democratic Senators Jack Reed and Laphonza Butler have requested the SEC to stop approving new crypto ETPs, citing misleading marketing and lack of investor protection. They highlighted a FINRA survey showing 70% of broker communications with retail investors were non-compliant with fair disclosure rules. The senators are concerned that Bitcoin ETFs mislead investors by not clearly disclosing the risks compared to traditional ETFs. In response, Coinbase's Chief Legal Officer, Paul Grewal, defended the potential of cryptocurrency ETPs, particularly highlighting the market depth and liquidity of ETH.