Ethereum
Is the Ethereum ETF Launch Date Closer Than We Think? Gensler intervenes
Have you thought about this?
Unlocking the potential of spot Ether exchange-traded funds (ETFs) in the United States relies on issuers’ responsiveness to comments from the Securities and Exchange Commission (SEC), as highlighted SEC Chairman Gary Gensler. He reassures that the SEC is committed to a timely approval process.
Notable progress has been made, with the SEC greenlighting eight 19b-4 filings for spot Ether ETFs. However, the start of trading awaits approval of S-1 registration forms. Gensler points out that the pace of these approvals depends on how quickly issuers respond to SEC comments, influenced by various factors.
Understanding the impact of grayscale
A key consideration for the SEC regarding Ethereum ETFs is the precedent set by Grayscale’s legal challenge regarding Bitcoin ETFs. Grayscale argued that if Bitcoin futures ETFs are approved, spot Bitcoin ETFs should follow suit. This legal victory sets a similar tone for Ethereum ETFs. Gensler highlights the similarities between Bitcoin (BTC) and Ether (ETH), signaling a regulatory shift towards inclusiveness in crypto ETFs.
Well, does politics play a role?
While regulatory decisions are influenced by legal and business factors, political influences may also come into play. Bloomberg ETF analyst James Seyffart suggests that SEC Commissioner Jaime Lizárraga’s ties to prominent Democrat Nancy Pelosi could have influence. Pelosi advocates for the Financial Innovation and Technology for the 21st Century Act, aimed at fostering crypto innovation.
This political support could align with a broader strategy to address growing sentiment for cryptocurrencies among voters as the US general election approaches.
Broader Concerns: Gensler’s Take on the Crypto Market
Beyond Ethereum ETFs, Gensler raises broader concerns about the crypto market. In a June 5 interview, he criticized unethical practices on crypto exchanges, such as trading against customers, a practice banned on traditional financial markets like the NYSE. It highlights the SEC’s continued efforts to enforce regulations and strengthen market integrity. Gensler also points to significant regulatory gaps, particularly around disclosure standards, leaving investors exposed.
His remarks highlight the need for a strong regulatory framework to protect investors.
Well, it’s really not safe there. What do you think: Is SEC approval imminent?
Read also: Will China ban crypto? Top Analyst Lists Altcoins to “Stack” Ahead of Massive Capital Influx