Potential Delays Loom Over SEC's Final Approval of Ether ETFs, Gensler Hints
Summary:
Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), hinted at possible delays in final approvals for Ether (ETH) exchange-traded funds (ETFs) on exchanges. Despite such ETFs receiving preliminary approval, final authorization could take months. The regulatory body has taken legal actions against Ripple, Coinbase, Binance, and Kraken but has already initiated processes for eventually listing ETFs. Unlike spot Bitcoin ETFs, which were voted for by the five SEC commissioners, the approval of spot Ether ETFs was done by the SEC’s Trading and Markets Division. Gensler is expected to remain the SEC chair until 2026.
Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), has hinted that the approval process for Ether (ETH) exchange-traded funds (ETFs) put forward by asset managers may experience delays. Gensler, during a televised conversation with CNBC on June 5, indicated a possible postponement in the final decisions of the SEC regarding Ether ETFs put into motion by different firms. It's an indication that the SEC might be slow in issuing approvals for the S-1 registration statements. Even though VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise have received preliminary approval known as 19b-4 filings from the SEC on May 23, the finalization allowing listings and trading of these ETFs on U.S. exchanges could take some time - potentially months.
In his discussion, Gensler said cryptocurrency firms were involved in operations not permitted by traditional exchanges laws, suggesting his stance towards legal compliance would remain. Under his term, the SEC has taken legal actions against Ripple, Coinbase, Binance, and Kraken. Meanwhile, it abruptly had to shut down a regional office after a court judge in Utah made the SEC pay $1.8 million for exhibiting "bad faith conduct" in court.
Despite Gensler's hint at a likely slowdown in the approval of the spot Ether ETFs, work is currently underway to make the listing of these shares on exchanges a reality. The preliminary 19b-4 approvals for spot Ether ETFs were issued five months after similar approvals were given for several spot Bitcoin (BTC) ETF applications, a first in the crypto industry. Prior to Gensler’s hint at a delay, Eric Balchunas, a Bloomberg ETF analyst, had forecasted a launch for spot Ether ETFs by July 4.
Unlike the spot Bitcoin ETFs, the five SEC commissioners did not cast votes to approve the spot Ether ETFs, an approval that instead came from the SEC’s Trading and Markets Division. Gensler is expected to continue serving as Chair of the SEC until 2026. As of June 5, SEC Commissioner Caroline Crenshaw’s official term has ended. However, no announcement has been forthcoming from President Joe Biden indicating whether he plans to nominate a successor or retain her. A recent magazine report projected Ether ETFs to make their entry in June, among other news in the crypto industry.
Published At
6/5/2024 6:41:44 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.