SEC Chair Gary Gensler Reports Smooth Progress for Ethereum ETF Process

Jimmy Aki
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On June 25, US Securities and Exchange Commission (SEC) Chairman Gary Gensler disclosed that the regulatory review process for spot Ether ETF is going well, thus paving the way for a new ETF debut in the coming months.

Spot Ether ETF Issuers Needs to Submit “Proper Disclosures”

Speaking with journalist Annmarie Hordern at the Bloomberg Invest event in New York, US SEC Chairman Gary Gensler showed signs of impatience when responding to questions about cryptocurrency, particularly regarding his agency’s handling of applications to launch spot Ether ETFs.

Gensler mentioned at the interview that he does not have a precise timeline of when a potential approval for spot Ether ETF trading might occur, but he noted that the review process is “going smoothly.”

He further elaborated that the US regulator is awaiting asset managers to make the necessary disclosures. These disclosures are important for the regulatory review and approval process, ensuring the proposed spot Ether ETFs comply with the SEC’s stringent requirements.

It should be noted that the issue of cryptocurrency ETFs has been a contentious topic during Gensler’s tenure.

This controversy was driven by a federal appeals court’s decision last year to overturn the SEC’s denial of Bitcoin ETF applications. The court’s ruling forced the SEC to approve those Bitcoin applications in January 2024.

Initially, Gensler signaled that the Ethereum ETF petitions might face similar resistance, but pressures from crypto communities and renowned experts reportedly made the US regulatory agency make a U-turn, thus resulting in the SEC’s approval of spot Ether ETF on May 23, 2024.

While the approval of these ETFs has been granted, they are still required to meet additional regulatory requirements before they can be cleared and listed for trading.

Gary Gensler Tags Crypto as a “Non-Compliant Model”

Under Gensler’s leadership, the US SEC has expanded the pathways for investors to buy cryptocurrencies. Most notably, the approved Bitcoin ETFs have attracted billions of dollars in investments and fueled BTC prices to new peaks.

However, Gensler has also been one of the crypto industry’s consistent critics.

He remarked at the interview that much of the crypto industry is “built up on a business model that is a non-compliant model,” noting that the public has been harmed by the industry’s excesses.

Gensler stated,

“It’s about real protections for investors and for other people that want to access the capital markets. It’s about trust in those markets.”

When asked about the potential impact of the SEC’s stringent policies against crypto and the wave of litigations against crypto-centric firms on President Joe Biden’s re-election chances, especially against a pro-crypto candidate like Donald Trump, Gensler responded that his allegiance lies with the American public.

Pro-crypto voters are expected to gravitate toward Donald Trump, whose campaign is built on promises to improve crypto innovations in the US, contrasting sharply with President Biden’s administration policies.

Prominent public figures have begun funding Trump’s campaign, with the latest contribution coming from the Winklevoss Twins, co-founders of the Gemini exchange. They donated $2 million worth of Bitcoin to support Trump’s presidential campaign and have rallied fellow crypto supporters to back the candidate.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.