Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has indicated a possible delay in approving spot Ether (ETH) exchange-traded funds (ETFs) for asset managers. During an interview on CNBC on June 5, Gensler mentioned that the SEC’s approval process for spot Ether ETFs is expected to take some time, hinting at a potential delay in signing off on S-1 registration statements. While the SEC has given the green light to 19b-4 filings from various asset managers, including VanEck, BlackRock, and Fidelity, final approvals for listing and trading ETFs on U.S. exchanges could still be months away.
Gensler also noted in the interview 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 under his leadership. Despite filing lawsuits against companies like Ripple, Coinbase, Binance, and Kraken, the SEC has faced challenges, such as having to close one of its regional offices due to a court order demanding payment over “bad faith conduct.”
While there may be a delay in the approval process for spot Ether ETFs, the SEC has initiated steps towards eventually listing shares on exchanges. The recent approvals for spot Ether ETFs come after the SEC approved several spot Bitcoin (BTC) ETF applications five months ago. Unlike spot Bitcoin ETFs, spot Ether ETFs did not require approval from the commissioners, as they were given the green light by the SEC’s Trading and Markets Division. Gensler is expected to continue serving as the SEC Chair until 2026, while the replacement for Commissioner Caroline Crenshaw, whose term ended on June 5, is yet to be announced by President Joe Biden.
In related news, there is anticipation for the launch of Ether ETFs in June, along with other developments in the cryptocurrency industry, including CZ’s departure from Binance France. This information was covered in Hodler’s Digest from May 26 to June 1.