Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at a possible delay in granting final approvals for asset managers looking to offer spot Ether (ETH) exchange-traded funds (ETFs) on exchanges.
During an interview on CNBC on June 5th, Gensler mentioned that the SEC’s approval process for spot Ether (ETH) ETFs will “take some time,” indicating that the commission may take its time in reviewing and approving S-1 registration statements. While the SEC gave the green light to 19b-4 filings from various companies such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise on May 23rd, final approvals for listing and trading ETFs on U.S. exchanges could be delayed for several months.
Gensler also pointed out that cryptocurrency firms were engaging in activities that traditional exchanges are not allowed to do under current laws, indicating that the SEC’s stance on enforcement actions is unlikely to change under his leadership. The SEC has taken legal action against Ripple, Coinbase, Binance, and Kraken, and recently had to shut down one of its regional offices after being ordered by a Utah judge to pay $1.8 million for “bad faith conduct” in court.
Although Gensler suggested a potential slowdown in the approval process for spot Ether ETFs, the SEC has already started the process of eventually listing shares on exchanges. The approval of spot Ether ETF 19b-4 filings came after the SEC approved several spot Bitcoin (BTC) ETF applications, marking a significant milestone for the industry. Despite Bloomberg ETF analyst Eric Balchunas’ prediction of a July 4th launch date for spot Ether ETFs, the final approval process may still take some time.
Unlike spot Bitcoin ETFs, the approval for spot Ether ETFs did not require a vote from the five 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 5th. As of now, U.S. President Joe Biden has not announced whether he plans to nominate a replacement for Crenshaw or allow her to stay in her position.
In other news, expectations are high for the launch of Ether ETFs in June, while CZ announced his departure from Binance France. Stay updated with Hodler’s Digest for more news from May 26th to June 1st.