Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at potential delays 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 might “take some time,” indicating a possible slowdown in signing off on S-1 registration statements. While the SEC has given the green light to 19b-4 filings from various firms, including VanEck, BlackRock, and Fidelity, final approvals for listing and trading ETFs on U.S. exchanges could be months away.
Gensler also highlighted that cryptocurrency firms are engaging in activities that traditional exchanges are not allowed to do under current laws. He suggested that the SEC’s stance on enforcement actions is unlikely to change during his tenure. Despite lawsuits against companies like Ripple, Coinbase, Binance, and Kraken, the SEC faced a setback when a Utah judge ordered the closure of one of its regional offices and mandated a payment of $1.8 million due to “bad faith conduct” in court.
Although Gensler implied a potential delay in spot Ether ETF approvals, the SEC has initiated steps towards eventually listing shares on exchanges. The recent approvals for spot Ether ETFs came after the SEC’s milestone approval of spot Bitcoin (BTC) ETF applications. Unlike spot Bitcoin ETFs, spot Ether ETFs did not require a vote from all five commissioners as they were approved by the SEC’s Trading and Markets Division. Gensler is expected to serve as SEC chair until 2026, and the nomination of a replacement for Commissioner Caroline Crenshaw, whose term ended on June 5, is still pending.
In related news, there is anticipation for the launch of Ether ETFs in June, and Binance France’s CEO has left his position. This update and more can be found in Hodler’s Digest from May 26 to June 1.