The advancement of spot Ethereum exchange-traded funds (ETFs) is progressing well, according to Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC). While Gensler did not provide a specific launch date, he confirmed that the process is “going smoothly” during his speech at the Bloomberg Invest Summit in New York.
Steady Progress on Ethereum ETFs
Last month, the SEC approved 19b-4 forms for eight Ethereum ETFs. However, firms seeking to launch these products must still have their registration statements, known as S-1s (or S-3 for Grayscale, which aims to convert its Ethereum Trust to an ETF), approved before trading can commence.
Recently, these firms submitted amended registration statements detailing seed investments and fees while waiting for the SEC’s final approval to begin trading. Gensler emphasized that the key to progressing lies with asset managers making full disclosures, ensuring these registration statements can become effective.
“This process is handled efficiently by our Division of Corporation Finance, which manages hundreds, if not thousands, of such cases throughout their careers,” Gensler explained. “It ultimately depends on the asset managers to provide the necessary disclosures.”
Senior Bloomberg ETF analyst Eric Balchunas has predicted that spot Ethereum ETFs could be launched as early as next week.
Gensler’s Stance on Cryptocurrency Compliance
Gensler also reiterated his concern that most cryptocurrencies are considered securities and that many crypto platforms are not complying with SEC regulations. He stressed the need for proper disclosure to the American public, as mandated by law.
Cryptocurrency and the Upcoming Election
Cryptocurrency has become a topic of interest in the upcoming election. Republican presidential candidate Donald Trump has shown increasing support for crypto, advocating for bitcoin mining and accepting political donations in cryptocurrency. In contrast, President Joe Biden’s re-election campaign has begun consulting with crypto industry members on digital asset policies, indicating a shift from the administration’s previously unfavorable stance on crypto.
When asked to respond to billionaire Mark Cuban’s claim that Gensler would be to blame if President Biden lost the election, Gensler declined to comment, stating, “I don’t speak about elections.”
This update underscores the dynamic nature of the crypto regulatory environment and its growing significance in the political arena as the election approaches.
