Possible Bonk ETF Coming Soon SEC Chair Gary Gensler Weighs In

Key Points
In a recent appearance on live television, SEC Chair Gary Gensler took a more gentle approach when discussing the potential for crypto ETFs.
Gensler suggested that BONK could be classified as an unregistered security, indicating the need for increased regulation.
Approval for Ethereum spot ETFs is in progress, but registration statement approvals are required.
In a recent interview on CNBC’s “Mad Money,” Gary Gensler, the Chair of the SEC, addressed the topic of potential crypto ETFs with a more lenient tone than usual.
Is the SEC Opening Up to Crypto ETFs?
During the interview, host Jim Cramer raised the question of introducing ETFs for various cryptocurrencies, such as Polkadot, Cardano, Cosmos, Bonk, Osmosis, and Ronin, all of which had seen significant trading activity that morning.
Cramer highlighted the high trading volumes, questioning the lack of a suitable product for coins like Bonk and Osmosis, which were trading in the millions. He suggested that there should be some form of product available.
Gary Gensler’s Stance
When asked about the potential for a BONK ETF, Gensler did not provide a direct response. Instead, he pointed out the lack of essential information for investors to make informed decisions about many crypto tokens, hinting that they could be considered unregistered securities. He stressed the importance of regulatory measures to prevent fraud and manipulation in the crypto market.
Gensler also criticized crypto exchange platforms for engaging in practices that would not be tolerated on traditional stock exchanges like the NYSE. This critique highlighted his concerns about the current regulatory environment in the industry.
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 suggests that, with the right regulations in place, a wider range of cryptocurrency ETFs, starting with Ethereum, could potentially be approved in the future.
A Call for Transparency
Despite his critiques, Gensler’s softened stance indicates a possible future where more crypto ETFs could receive approval, provided that there are significant improvements in transparency and oversight in the market. He emphasized the need for substantial regulatory progress in the crypto market before it can be considered on par with traditional financial markets.