The initiation of the first Ether exchange-traded funds (ETFs) in the United States is progressing smoothly, according to Gary Gensler, the Chair of the Securities and Exchange Commission (SEC). Speaking at a Bloomberg conference on June 25, Gensler refrained from specifying a launch timeline and declined to comment on whether they might debut before the November U.S. elections.
“The crucial factor now is for asset managers to provide comprehensive disclosures so that the registration statements can become effective,” Gensler stated. “Currently, our focus at the staff level is on reviewing these registration and disclosure statements. These disclosures are pivotal as they guide investor decisions.”
Although the SEC approved 19b-4 filings from eight ETF applicants on May 23, asset managers are still refining their Form S-1 submissions — the final filings required for SEC approval prior to trading commencement. Some analysts speculate that the SEC could greenlight trading as early as the first week of July.
Gensler emphasized the consistency of securities laws, despite ongoing efforts within the U.S. crypto industry to elevate digital assets as an election issue amid heightened SEC enforcement actions under his leadership. Presidential candidate Donald Trump pledged to end what he termed President Joe Biden’s “crypto war,” while billionaire investor Mark Cuban suggested that Gensler’s actions could sway the election outcome.
When questioned about these remarks, Gensler declined to comment on electoral matters. “Our regulatory framework is well-defined and applies uniformly. There’s no conflict between crypto assets and securities laws,” he asserted. “Unfortunately, there are numerous instances of non-compliance with these laws.”
Highlighting the regulatory landscape, Gensler noted that approximately 20,000 crypto tokens fall under U.S. investment contracts or securities laws but lack adequate disclosure for American investors. “Recent developments have led to legal actions against those not adhering to the law,” he remarked. “We’re pursuing these cases to protect the interests of the American public.”
In response to Gensler’s statements, Ripple CEO Brad Garlinghouse criticized them as “utter nonsense,” suggesting that Gensler had overlooked developments such as FTX. Meanwhile, in an unrelated context, the SEC faces significant legal challenges in the crypto space, akin to Godzilla battling Kong.