The Securities and Exchange Commission (SEC) Chair Gary Gensler has stated that the process of launching the first spot Ether exchange-traded funds (ETFs) in the United States is progressing smoothly. Gensler made this remark at a Bloomberg conference on June 25, where he declined to specify a launch date for the ETFs and deferred when questioned about the possibility of them going live before the November U.S. elections.
Gensler emphasized the importance of asset managers providing full disclosure for the registration statements to become effective. He highlighted the significance of these disclosures in aiding investors in making informed investment decisions. Although the SEC approved 19b-4 filings from eight ETF bidders on May 23, the asset managers are still adjusting their Form S-1s, which are the final filings required for SEC approval before the ETFs can be traded.
There are predictions that the SEC could approve the ETFs for trading as early as the first week of July. The U.S. crypto industry has been actively lobbying to make digital assets an election issue, following numerous enforcement actions from the Gensler-led SEC. This has led to some political figures and investors, such as Donald Trump and Mark Cuban, expressing their concerns about the impact of these actions on the industry and the upcoming election.
Gensler addressed these comments by stating that the rules are clear and there is nothing inconsistent about crypto securities and securities laws. He emphasized the importance of compliance with the law in order to protect the American public from non-compliant individuals in the crypto industry.
Gensler also highlighted the fact that many crypto tokens are considered investment contracts or securities under U.S. law and lack proper disclosure for American investors. He stressed that individuals who do not comply with the law are causing harm to the American public and are facing legal consequences as a result.
Ripple CEO Brad Garlinghouse criticized Gensler’s comments, describing them as “absolute nonsense” and claiming that the SEC boss “completely missed FTX.” This ongoing battle between the SEC and the crypto industry has posed a significant legal challenge, akin to a fierce battle between Godzilla and Kong.