The Securities and Exchange Commission (SEC) Chair Gary Gensler announced that the process of launching the first spot Ether exchange-traded funds (ETFs) in the United States is progressing smoothly. During a Bloomberg conference on June 25, Gensler refrained from providing a specific launch date for the ETFs and avoided commenting on whether they could go live before the November U.S. elections. He emphasized the importance of asset managers providing full disclosure in the registration statements to ensure effective implementation. The SEC granted approval for 19b-4 filings from eight ETF bidders on May 23, but the asset managers are still making adjustments to their Form S-1s, which need to be approved by the SEC before trading can commence. Some analysts have speculated that the SEC could approve the funds for trading as early as the first week of July.
The U.S. crypto industry has garnered significant financial support and engaged in lobbying efforts to make digital assets a prominent issue in the elections, following a wave of enforcement actions from the SEC under Gensler’s leadership. Presidential candidate Donald Trump pledged to end what he referred to as President Joe Biden’s “war on crypto,” while billionaire investor Mark Cuban suggested that Gensler’s actions could potentially impact Biden’s chances of winning the election. When asked about these comments, Gensler refrained from discussing the elections and instead emphasized the clarity of the existing securities laws pertaining to crypto securities. He noted that there are individuals who are not compliant with these laws and stated that many crypto tokens, up to 20,000, are considered investment contracts or securities under U.S. law but lack proper disclosure for American investors. Gensler stressed the importance of bringing non-compliant individuals to court, as their actions have negative consequences for the American public.
Ripple CEO Brad Garlinghouse strongly criticized Gensler’s statements, referring to them as “absolute nonsense” and claiming that the SEC boss overlooked the significance of FTX. He argued that Gensler’s approach is flawed and stated that legal battles between the SEC and the crypto industry are reminiscent of the clash between Godzilla and Kong, highlighting the intense struggle between the two sides.