Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at a possible delay in approving spot Ether (ETH) exchange-traded funds (ETFs) offered by asset managers on exchanges.
During an interview on CNBC on June 5, Gensler mentioned that the SEC’s approval process for spot Ether ETFs would “take some time,” indicating a potential slowdown in signing off on S-1 registration statements. While the SEC has given the green light to 19b-4 filings from various companies like VanEck, BlackRock, and Fidelity, final approvals for listing and trading ETFs on U.S. exchanges could still be months away.
Gensler also noted that cryptocurrency firms were engaging in activities that traditional exchanges were not allowed to do under existing laws. This suggests that the SEC’s stance on enforcement actions is unlikely to change under his leadership. The SEC has recently taken legal action against major players in the crypto space such as Ripple, Coinbase, Binance, and Kraken. Additionally, the SEC had to close one of its regional offices after being ordered by a Utah judge to pay $1.8 million due to “bad faith conduct” in court.
Despite the potential delay in approving spot Ether ETFs, the SEC has already taken steps towards listing shares on exchanges. The approval of spot Ether ETF 19b-4 applications followed the SEC’s approval of spot Bitcoin (BTC) ETF applications, marking a significant milestone in the industry. While Bloomberg ETF analyst Eric Balchunas had predicted a July 4 launch date for spot Ether ETFs before Gensler’s comments, it is clear that the process may take longer than anticipated.
Unlike spot Bitcoin ETFs, spot Ether ETFs did not require approval from the SEC’s commissioners and were instead greenlighted by the 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 5. As of now, U.S. President Joe Biden has not announced whether he will nominate a replacement for Crenshaw or allow her to remain in her position.
In other news, expectations are high for the launch of Ether ETFs in June, while Binance France sees CZ leaving the company. These developments, along with other news in the crypto space, were covered in the latest issue of Hodler’s Digest from May 26 to June 1.