Gensler states Ethereum ETF launch date hinges on issuers not SEC

Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), has indicated that the approval of spot Ether exchange-traded funds (ETF) in the United States will hinge on how quickly issuers can address the SEC’s comments.
Gensler’s recent statements suggest that the responsibility for approvals lies with Ether (ETH) issuers and that the SEC will not unnecessarily delay the process. Despite the SEC’s approval of eight 19b-4 filings to list spot Ether ETFs on U.S. exchanges on May 23, trading cannot commence until the necessary S-1 registration statement approvals are obtained.
In a report by Reuters on June 6, Gensler emphasized that while registrants are eager to respond to comments, the speed of their responsiveness is ultimately up to them. This contrasts with his earlier comments on CNBC hinting that the approval process would be time-consuming, leading some to speculate that the SEC would take its time with the S-1 Forms.
Bloomberg ETF analyst Eric Balchunas had initially suggested that the process could take weeks or months, but he now predicts a possible approval by the first week of July. The SEC’s sudden shift in tone towards spot Ether ETFs just before the initial decision deadline remains unexplained, although Gensler hinted that it may have been influenced by Grayscale’s successful legal challenge for a Bitcoin ETF in 2023.
Additionally, Bloomberg ETF analyst James Seyffart proposed an alternate theory, suggesting that SEC commissioner Jamie Lizárraga, who has ties to Nancy Pelosi, a prominent figure in the U.S. Democratic Party, may have played a role in the reversal on Ether ETFs. This theory points to a broader concern among Democratic lawmakers regarding cryptocurrency ownership and its impact on the political landscape.
Nancy Pelosi was among the House Democrats who supported the FIT21 crypto bill, which passed a vote in the U.S. House of Representatives on May 22. This legislative milestone reflects the growing influence of crypto voters on the political landscape, setting the stage for further disruptions in the upcoming 2024 election.