Two U.S. Senators are throwing cold water on the idea of more cryptocurrency exchange-traded funds (ETFs) being approved by the Securities and Exchange Commission (SEC).

Senators Jack Reed (D-RI) and Laphonza Butler (D-SC) reportedly sent a letter to SEC Chair Gary Gensler urging him to deny further crypto ETFs, citing concerns about protecting investors from the “enormous risks” associated with cryptocurrency.

The Senators’ main argument centers around the potential harm retail investors could face. They believe these ETFs could mislead regular investors into thinking cryptocurrencies are a safe and reliable investment, downplaying the inherent volatility and lack of regulation within the crypto market.

The letter reportedly criticizes the naming conventions used for some existing Bitcoin ETFs, arguing they obfuscate the true nature of the product. Senators Reed and Butler claim these are not traditional ETFs but rather exchange-traded products (ETPs) with different underlying structures and risk profiles. They emphasize the need for clear and comprehensive information for investors considering these crypto-linked products.

This latest development comes amidst a larger debate about crypto regulation in the United States. The SEC has so far rejected numerous applications for spot Bitcoin ETFs, which would directly track the price of Bitcoin. However, a recent court ruling in favor of Grayscale Investments against the SEC has added pressure on the Commission to potentially reconsider its stance.

The Senators’ letter puts pressure on Gensler to maintain a cautious approach towards crypto ETFs. It remains to be seen how the SEC will respond to these concerns and navigate the evolving regulatory landscape surrounding cryptocurrencies.