Is a Spot Bonk ETF Being Considered SEC Chair Gary Gensler Weighs In
Key Points
– Gary Gensler showed a more positive attitude towards potential crypto ETFs during a recent TV appearance.
– Gensler raised concerns about BONK possibly being an unregistered security that requires more regulation.
– Approval for Ethereum spot ETFs is pending registration statement approvals.
In a recent live TV interview, the Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, expressed a more tempered view on the crypto industry, particularly when discussing the potential for upcoming crypto ETFs.
The Future of Crypto ETFs: Is the SEC Changing its Stance?
During an interview on CNBC’s “Mad Money,” host Jim Cramer asked Gensler about the possibility of introducing ETFs for various cryptocurrencies. Cramer mentioned popular coins like Polkadot, Cardano, Cosmos, Bonk, Osmosis, and Ronin, which had significant trading volumes that morning.
Cramer highlighted the high trading activity and questioned whether products like Bonk and Osmosis should be available for investors. Gensler, however, did not provide a direct response. Instead, he pointed out the lack of essential information for investors in many crypto tokens, suggesting they could be unregistered securities. He stressed the importance of regulating the crypto market to prevent fraud and manipulation.
Gensler also criticized crypto exchange platforms for conducting practices that would not be tolerated on traditional stock exchanges like the New York Stock Exchange. This criticism reflects his concerns about the current regulatory environment in the industry.
Any Prospects for Ethereum ETFs?
Regarding the recent approvals for Ethereum spot ETFs, Gensler mentioned that it would take time for their registration statements to be approved before they could be listed on public exchanges. This cautious approach indicates that there may be potential for a wider range of cryptocurrency ETFs in the future, starting with Ethereum.
A Call for Transparency
Despite his critiques, Gensler’s more positive tone hints at the possibility of approving more crypto ETFs in the future, provided there are significant improvements in transparency and oversight in the market. He emphasized the need for substantial regulatory progress in the crypto industry before it can be seen as comparable to traditional financial markets.