Is a Spot Bonk ETF Coming Soon Heres What SEC Chair Gary Gensler Has to Say
Key Points
SEC Chair Gary Gensler adopted a more diplomatic approach when discussing potential crypto ETFs during a recent TV appearance.
Gensler suggested that BONK might be an unregistered security, urging for stricter regulation.
Approval for Ethereum spot ETFs is pending registration statement approvals.
In a recent interview on CNBC’s “Mad Money,” SEC Chair Gary Gensler discussed the possibility of introducing ETFs for various cryptocurrencies in a less harsh manner than before.
Here’s what you need to know.
Changing Stance on Crypto ETFs: A Shift at the SEC?
During the interview, host Jim Cramer raised questions about the potential for ETFs for cryptocurrencies like Polkadot, Cardano, Cosmos, Bonk, Osmosis, and Ronin, which had seen significant trading volumes that day.
Cramer highlighted the substantial trading activity, suggesting that products like Bonk and Osmosis could be a natural fit for ETFs given their popularity.
When asked specifically about a BONK ETF, Gensler avoided a direct response. He noted the lack of essential information for investors in many crypto tokens, hinting that they could be considered unregistered securities. He stressed the importance of robust regulation to safeguard against fraud and manipulation in the crypto market.
Gensler also criticized crypto exchanges for practices that would not be tolerated on traditional stock exchanges, illustrating his concerns about the current regulatory landscape in the industry.
Is There Hope 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 a broader range of cryptocurrency ETFs, starting with Ethereum, could be on the horizon with the right regulatory framework in place.
A Push for Transparency
Despite his critiques, Gensler’s more measured tone suggests a potential future where more crypto ETFs could receive approval if there are significant improvements in transparency and oversight within the market. He emphasized the need for substantial regulatory progress in the crypto space to bring it in line with traditional financial markets.
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Ethereum ETF