Gensler Shares Insights on Ethereum ETF Launch Date Is it Closer Than Anticipated

SEC Chair Gary Gensler recently stated that the approval of U.S. spot Ether exchange-traded funds (ETFs) hinges on how quickly issuers respond to feedback from the Securities and Exchange Commission (SEC). Gensler emphasized that the SEC will not purposely delay the approval process.

While the commission has approved eight 19b-4 filings for spot Ether ETF listings, trading cannot commence until the S-1 registration forms receive the necessary approvals. Gensler’s remarks indicate that the speed of these approvals will be determined by how promptly issuers address the SEC’s feedback, which is influenced by various factors.

Grayscale’s legal challenge has had a significant impact on the SEC’s stance toward Ethereum ETFs. Following a successful legal challenge regarding Bitcoin ETFs, Grayscale argued that Bitcoin ETFs should not be denied approval if Bitcoin futures ETFs are approved. This victory paved the way for a similar approach to be taken with Ethereum ETFs. Gensler highlighted the similarities between Bitcoin (BTC) and Ethereum (ETH), signaling a regulatory shift toward a more inclusive approach to crypto ETFs.

While regulatory decisions are typically based on legal and market considerations, there are speculations that political influences could also play a role. Bloomberg ETF analyst James Seyffart suggested that SEC Commissioner Jaime Lizárraga may have been influenced by his ties to prominent Democrat Nancy Pelosi, who supports legislation promoting crypto innovation. This alignment with Pelosi’s initiatives may be part of a broader political strategy to appeal to voters with a favorable view of cryptocurrencies ahead of the U.S. general elections.

In addition to concerns surrounding Ethereum ETFs, Gensler has raised broader issues regarding the crypto market. In a recent interview, he criticized unethical practices in crypto exchanges, such as trading against customers, which is prohibited in traditional financial markets like the NYSE.

Gensler highlighted the SEC’s ongoing efforts to enforce regulations and enhance market integrity. He also pointed out significant regulatory gaps, particularly in terms of disclosure standards, that leave investors vulnerable. This underscores the importance of a robust regulatory framework to safeguard investors and promote fair practices in the rapidly evolving crypto industry.