Ethereum
Gensler Confirms Ethereum Spot ETFs Will Be Approved “This Summer” During Senate Hearing
President of the SEC Gary Gensler said regulator expects to approve spot Ethereum S-1 registration forms for ETF applications “sometime this summer,” which would be the final step before the funds launch in the United States.
Gensler confirmed that the ETFs could launch by the end of summer, well before the November presidential elections.
The watchdog recently approved related 19b-4 applications filed by the exchanges in May. However, approval of individual issuers’ S-1 registration forms is still pending.
Gensler said during a Senate hearing on June 13 that:
“Individual issuers are still going through the registration process. That works well.
Sen. Bill Hagerty praised Gensler for committing to him that the applications would be approved by the end of the summer. He added:
“We have to get this deal.”
Launch schedule, product classification
by Gensler the timeline matches the forecast carried out by industry experts in recent weeks.
Bloomberg ETF Analysts suggested that approval of S-1 documents could take “weeks” to “months” after 19b-4 approvals. Likewise, others, including JP Morgan, predicted that ETFs would begin trading. before the November elections.
Currently, despite the pending S-1 approval, the introduction of Ethereum spot ETFs in the United States is considered inevitable. Additionally, Ethereum is now considered a commodity by many in the industry, including legal experts, who argue that the SEC’s approval of Ethereum as a single-asset ETF product implies its classification as a commodity .
However, when questioned by the Senate, Gensler did not clarify whether Ethereum is classified as a security or a commodity. He sidestepped the question and did not give a clear answer, saying the agency had only “partially” approved Ethereum ETFs.
Meanwhile, CFTC Chairman Rostin Behnam told the Senate very clearly that Ethereum was a commodity and should be overseen by his agency.
Concerns over budget provisions
Gensler also addressed the SEC’s FY 2025 budget request, highlighting significant growth and changes in the markets. He said:
“Our limited resources contrast with the considerable growth and evolution of our markets. »
He added that the SEC currently supervises approximately 40,000 entities, including more than 13,000 registered funds, 15,400 investment advisers and 3,300 broker-dealers.
Gensler said he was concerned about a stipulation in the agency’s fiscal 2025 funding bill by the House Appropriations Committee that restricts the use of funds for enforcement actions related to financial transactions. digital assets, with the exception of fraud or market manipulation.
Gensler said:
“This would seriously undermine our efforts. Although not all cryptos are cryptographic securities…those that are have an obligation to disclose full, fair, and complete information to the public.
The SEC Chairman emphasized the agency’s critical role in maintaining market integrity and protecting investors. He also stressed the importance of adequate financing to keep pace with rapidly changing markets and technological advancements.
He told the Senate:
“The SEC is the watchdog that monitors the investing public and issuers.”