Ethereum
Is the Ethereum ETF Launch Date Closer Than We Think? Gensler intervenes
According to SEC Chairman Gary Gensler, the launch of Ether spot exchange-traded funds (ETFs) in the United States currently depends on how quickly issuers respond to comments from the Securities and Exchange Commission (SEC). In a recent statement, he mentioned that the SEC would not intentionally prolong this approval process.
Significant progress has been made, with the commission approving eight 19b-4 filings to list spot Ether ETFs. However, the start of trading now awaits the necessary approvals of S-1 registration forms. Gensler’s comments emphasize that how quickly these approvals are granted depends largely on how quickly issuers respond to comments from the SEC, whose decisions are influenced by certain factors.
The impact of Grayscale’s legal challenge
An important factor influencing the SEC’s stance on Ethereum ETFs is the precedent set by Grayscale’s legal challenge regarding Bitcoin ETFs. Grayscale argued that if Bitcoin futures ETFs receive SEC approval, Bitcoin ETFs should not be denied either. This legal victory led to a similar approach being applied to Ethereum ETFs. Gensler highlighted the comparable correlations between BTC and ETH, indicating a gradually shifting regulatory environment towards a more inclusive outlook on crypto ETFs.
Speculation about political influence
Although regulatory decisions depend primarily on legal and market factors, some believe that political influences also play a role. Bloomberg ETF analyst James Seyffart suggested that SEC Commissioner Jaime Lizárraga may have been influenced by his relationship with prominent Democrat Nancy Pelosi. Pelosi supports the Financial Innovation and Technology for the 21st Century Act, which aims to drive crypto innovation. This support could reflect a broader political strategy aimed at aligning with growing cryptocurrency sentiment among voters as the US general election approaches.
Broader Regulatory Concerns About Crypto
Aside from the specifics of Ethereum ETFs, Gensler also expressed broader concerns regarding the crypto market. In a June 5 interview, he criticized ongoing unethical practices on cryptocurrency exchanges, such as trading against customers, a practice firmly prohibited in traditional financial markets like the NYSE.
Gensler cited the SEC’s ongoing efforts to enforce regulations and strengthen market integrity. He also said significant gaps in regulation, particularly in terms of disclosure standards, make investors more vulnerable. Therefore, this critique highlights the need for a robust regulatory framework to protect investors and ensure fair practices in the rapidly evolving crypto sphere.