In a recent interview on CNBC, Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), indicated a potential delay in final approvals for asset managers seeking to offer spot Ether exchange-traded funds (ETFs) on exchanges.
Gensler suggested that the SEC’s next steps regarding the approval of spot Ether ETFs would “take some time,” implying a slow process or possible delay in signing off on S-1 registration statements. While the SEC recently approved 19b-4 filings from several prominent asset managers, including VanEck, BlackRock, and Fidelity, the final approvals necessary for listing and trading ETFs on U.S. exchanges could still be months away.
During the interview, Gensler highlighted that cryptocurrency firms were engaging in activities not permitted by traditional exchanges, indicating that the SEC’s stance on enforcement actions was unlikely to shift under his leadership. The SEC has previously initiated lawsuits against major players in the cryptocurrency industry, including Ripple, Coinbase, Binance, and Kraken.
However, the SEC’s enforcement efforts have faced challenges, as evidenced by the recent closure of one of its regional offices following a Utah judge’s order for the SEC to pay $1.8 million due to “bad faith conduct” in court.
As the SEC navigates the evolving landscape of digital assets, investors and industry stakeholders await further clarity on the regulatory framework governing cryptocurrencies and related financial products. Stay tuned for updates on this developing story.
