Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), has hinted at a possible delay in the final approval of spot Ether (ETH) exchange-traded funds (ETFs) offered by asset managers on exchanges.
During an interview with CNBC on June 5, Gensler mentioned that the SEC’s approval process for spot Ether ETFs would “take some time,” indicating that the commission may take its time in approving S-1 registration statements. While the SEC has given the green light to 19b-4 filings from various companies including VanEck, BlackRock, and Fidelity, the final approvals needed for ETF listing and trading 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 legal proceedings against companies like Ripple, Coinbase, and Binance, while also facing consequences such as the closure of a regional office 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 started the process of eventually listing shares on exchanges. The recent approvals for spot Ether ETFs followed the SEC’s approval of spot Bitcoin (BTC) ETF applications, making it a first in the industry. Prior to Gensler’s comments, Bloomberg ETF analyst Eric Balchunas had predicted a launch date of July 4 for spot Ether ETFs.
In contrast to spot Bitcoin ETFs, spot Ether ETFs were not voted on by the five commissioners but were instead approved by the SEC’s Trading and Markets Division. Gensler is expected to remain 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 made an announcement regarding whether he will nominate a replacement for Crenshaw.
In other news, Ether ETFs are anticipated to be launched in June, and Binance France has seen its CEO, CZ, depart. This and more can be found in Hodler’s Digest from May 26 to June 1.