Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at a possible delay in final approvals 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 process for spot Ether ETFs will “take some time,” indicating a potential delay in signing off on S-1 registration statements. While the SEC gave the green light to 19b-4 filings from various companies such as VanEck, BlackRock, and Grayscale on May 23, the final approvals needed for listing and trading ETFs on U.S. exchanges may still be months away.
Gensler also highlighted that cryptocurrency firms were engaging in activities that traditional exchanges were not allowed to do under current laws. This suggests that the SEC’s stance on enforcement actions is unlikely to change under Gensler’s leadership. Despite recent lawsuits against Ripple, Coinbase, Binance, and Kraken, the SEC faced a setback when a Utah judge ordered them to pay $1.8 million over “bad faith conduct” in court, leading to the closure of one of its regional offices.
While Gensler’s comments hinted at a potential slowdown in the spot Ether ETF approval process, the SEC has already initiated steps towards eventually listing shares on exchanges. The approval of spot Ether ETF 19b-4 filings comes after the SEC’s approval of spot Bitcoin (BTC) ETF applications, making it an industry milestone. Prior to Gensler’s remarks, Bloomberg ETF analyst Eric Balchunas had predicted a launch date of July 4 for spot Ether ETFs.
Unlike spot Bitcoin ETFs, 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, it remains unclear whether U.S. President Joe Biden will nominate a replacement for Crenshaw or choose to retain her.
In related news, Ether ETFs are anticipated to launch in June, and CZ has departed from Binance France. For more updates, check out Hodler’s Digest from May 26 to June 1.