Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at possible delays in the final approval process for asset managers looking to offer spot Ether (ETH) exchange-traded funds (ETFs) on exchanges.
During an interview on CNBC on June 5, Gensler mentioned that the SEC’s approval of spot Ether ETFs is expected to “take some time,” indicating a potential slowdown in signing off on S-1 registration statements. While the SEC has already approved 19b-4 filings from various companies like VanEck, BlackRock, and Grayscale, the final approvals needed for the listing and trading of ETFs on U.S. exchanges could be a lengthy process.
Gensler also highlighted that cryptocurrency firms are engaging in activities that traditional exchanges are not allowed to do under current laws. This suggests that the SEC’s stance on enforcement actions is unlikely to change during Gensler’s tenure. The SEC has been involved in lawsuits against Ripple, Coinbase, Binance, and Kraken, and recently had to close one of its regional offices due to a court order to pay $1.8 million for “bad faith conduct.”
Despite the potential delay in spot Ether ETF approvals, the SEC has already taken steps towards listing shares on exchanges. The recent approval of spot Ether ETF 19b-4 filings follows the approval of spot Bitcoin ETF applications, making it an industry first. Prior to Gensler’s comments, Bloomberg ETF analyst Eric Balchunas had predicted a potential launch date for spot Ether ETFs on July 4.
Unlike the approval process for spot Bitcoin ETFs, the approval for spot Ether ETFs did not require a vote from the five SEC commissioners, as they were greenlighted 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 plans to nominate a replacement for Crenshaw or have her remain in the position.
In other news, the launch of Ether ETFs is anticipated in June, while CZ has left Binance France. Stay informed with Hodler’s Digest.