Smooth Progress for First U.S. Ether (ETH) ETFs, Says SEC Chairman Gary Gensler
Summary:
Chairman Gary Gensler of the Securities and Exchange Commission (SEC) has reported smooth progress towards launching the first spot Ether (ETH) exchange-traded funds (ETFs) in America. He advocated for asset managers to fully disclose all relevant information, while declining to comment on the launch timeline. Gensler also responded to comments from presidential hopeful Donald Trump and billionaire investor Mark Cuban, emphasizing the clarity and consistency of crypto securities laws. However, he pointed out compliance issues with some crypto tokens. Ripple CEO, Brad Garlinghouse, criticized Gensler's perspective as potentially harmful for Joe Biden's election chances.
The progress towards launching the inaugural spot Ether (ETH) exchange-traded funds (ETFs) in America is proceeding without a hitch, according to Chairman Gary Gensler of the Securities and Exchange Commission (SEC). Addressing a conference hosted by Bloomberg on June 25, Gensler refrained from providing details about the possible timeline for the launch of the ETFs and declined to comment on whether they might be initiated before November's U.S. elections. He emphasized that the key thing was for the asset managers to fully disclose all relevant information so that their registration statements could be effectively implemented.
As Gensler explained, the current focus at the staff level is on reviewing the registration statements and associated disclosure statements. Investor decision-making is significantly aided by these all-important disclosures, he asserted. While the SEC gave its consent to 19b-4 applications from eight ETF contenders on May 23, these asset managers are currently fine-tuning their Form S-1’s, which are the final documents that the SEC must authorize before trading can begin. Market analysts anticipate that approval for trading could come as soon as next week - the first week of July.
While the Gensler-led SEC has issued a series of enforcement actions that has incited the American crypto sector to raise substantial funds and advocate for digital assets to be made an election issue, Gensler declined to comment on the subject in relation to election-related remarks made by presidential hopeful Donald Trump and billionaire investor Mark Cuban. According to Gensler, crypto securities laws are perfectly clear and fully consistent with general securities laws. However, compliance remains a problem for some individuals in the crypto sector.
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Gensler went on to allege that there are as many as 20,000 crypto tokens that are effectively investment contracts, which are classified as a form of security under U.S. legislation. He claimed that these tokens were failing to deliver the necessary disclosures to American investors. Notably, crypto sector leaders from a couple of years back are now in jail, awaiting jail time or extradition, according to Gensler. Conforming with laws is essential to avoid public harm for American citizens, he emphasized. On the other hand, Gensler's statements were branded as outright false by Ripple's CEO Brad Garlinghouse, who accused Gensler of completely overlooking the impact of FTX. He also warned that Gensler's approach could backfire politically for Joe Biden.
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Published At
6/26/2024 9:17:08 AM
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