Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at a potential delay in approving spot Ether (ETH) exchange-traded funds (ETFs) for asset managers. During an interview on CNBC on June 5, Gensler mentioned that the SEC’s approval process for spot Ether ETFs may take some time, indicating a possible slowdown in signing off on S-1 registration statements. While the SEC recently approved 19b-4 filings from various companies like VanEck, BlackRock, and Fidelity, the final approvals necessary for listing and trading ETFs on U.S. exchanges could face delays lasting several months.
Gensler also highlighted that cryptocurrency firms were involved in activities that were not permissible on traditional exchanges, implying that the SEC’s enforcement stance under his leadership would remain firm. The SEC has taken legal action against companies like Ripple, Coinbase, Binance, and Kraken. Additionally, the SEC had to shut down one of its regional offices following a court ruling in Utah that ordered the commission to pay $1.8 million due to “bad faith conduct.”
Despite the potential delay in approving spot Ether ETFs, the SEC has initiated the process to eventually list shares on exchanges. The approval for spot Ether ETFs under 19b-4 came after the SEC gave the green light to several spot Bitcoin (BTC) ETF applications, making it a significant milestone for the industry. Prior to Gensler’s remarks, Bloomberg ETF analyst Eric Balchunas had predicted a potential launch date of July 4 for spot Ether ETFs.
In contrast to spot Bitcoin ETFs, the approval for spot Ether ETFs did not require a vote from the five commissioners, as they were approved by the SEC’s Trading and Markets Division. Gensler is expected to continue serving as SEC chair until 2026, while the term of SEC Commissioner Caroline Crenshaw officially ended on June 5. As of now, U.S. President Joe Biden has not announced whether he will nominate a replacement or retain her in the position.
In other news, expectations are high for the launch of Ether ETFs in June, while Binance France sees the departure of CZ. Stay updated with Hodler’s Digest from May 26 to June 1 for more insights and updates.