Progress Steady on Ether ETFs Launch in U.S., Disclosures Vital: SEC Chair Gensler
Summary:
Gary Gensler, Chair of the Securities and Exchange Commission, confirms a steady progress towards launching the first U.S. exchange-traded funds (ETFs) for Ether, without committing to a specific date. He emphasizes the responsibility of asset managers to make comprehensive disclosure statements, hinting at possible trading approval as soon as July. He also reinforces the clarity of crypto securities and securities laws but notes frequent instances of non-compliance. Gensler dismisses speculations on electoral outcomes and indicates legal action against those not adhering to the law.
According to Gary Gensler, Chair of the Securities and Exchange Commission, the initiative to establish the premiere U.S. spot Ether (ETH) exchange-traded funds (ETFs) is advancing without hitches. While participating in a Bloomberg conference on June 25, Gensler avoided indicating a potential launch date for the ETFs and refrained from confirming whether they might be active prior to the November U.S. elections. In his words, the impetus lies in asset managers making comprehensive disclosures necessary for effective registration statements.
He highlighted the focus on the so-called registration statements and disclosure statements, emphasizing the import of these insights to investor decision-making. As of May 23, the SEC has given its nod to 19b-4 filings from eight hopefuls for the ETF, though final adjustments to their Form S-1's, the conclusive filings required for SEC approval before trading, are still being carried out by the managers. Analysts anticipate the possible green light from SEC for trading as early as the first week of July.
The U.S. crypto market, after an onslaught of enforcement steps from the SEC under Gensler, has accumulated millions and rallied to bring digital assets into the electoral agenda. Gary Gensler dismissed speculations on electoral outcomes in response to comments from aspirant president Donald Trump and billionaire financier Mark Cuban, reasserting clarity and coherence in crypto security rules and securities laws but acknowledging instances of non-compliance.
Gensler said his radar has picked out circa 20,000 cryptocurrency tokens he believes to be investment contracts – a type of security as per U.S. law – that have fallen short of delivering the “appropriate disclosure” to American investors. The spearheads who ushered in these crypto tokens a few years back, according to Gensler, are either incarcerated, awaiting imprisonment, or facing extradition. He shared that legal action has been sought against non-compliant parties, a move he believes will benefit the American public. Ripple CEO Brad Garlinghouse lambasted Gensler’s remarks as “unqualified nonsense”, claiming that Gensler has "utterly overlooked" FTX and warning of potential negative electoral consequences for Biden.
Published At
6/26/2024 9:17:08 AM
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