Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at possible delays in the final approval process for asset managers looking to offer spot Ether (ETH) exchange-traded funds (ETFs) on exchanges.
During an interview on CNBC on June 5, Gensler mentioned that the SEC’s approval of spot Ether ETFs would “take some time,” indicating a potential slow down in signing off on S-1 registration statements. While the SEC recently approved 19b-4 filings from various companies like VanEck, BlackRock, and Grayscale, the final approvals necessary for the listing and trading of 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 the law, suggesting that the commission’s enforcement actions would remain consistent. Despite facing legal battles with companies like Ripple and Coinbase, the SEC recently had to shut down one of its regional offices due to a court order to pay $1.8 million for “bad faith conduct.”
Although Gensler hinted at a possible slowdown in the approval process, the SEC has already taken steps towards eventually listing shares of spot Ether ETFs on exchanges. The recent approvals for spot Ether ETFs came after the SEC approved applications for spot Bitcoin ETFs, making it a first for the industry. While Bloomberg ETF analyst Eric Balchunas predicted a potential launch date of July 4 for spot Ether ETFs, the commissioners did not vote on their approval, leaving it up to the SEC’s Trading and Markets Division.
Gensler is expected to serve as SEC chair until 2026, and while Commissioner Caroline Crenshaw’s term officially ended on June 5, it is unclear whether U.S. President Joe Biden will nominate a replacement or allow her to continue in her role.
In other news, expectations are high for Ether ETFs to launch in June, while Binance France saw CZ leaving amidst other developments covered in Hodler’s Digest from May 26 to June 1.