SEC Chair Gary Gensler Hints at Approving Spot Ether ETFs by September

By the end of September, spot Ether (ETH) ETFs may obtain complete regulatory approval, according to Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC). The last set of files, or S-1s, are presently being reviewed by staff, according to Gensler, who made this revelation on June 13 before a Senate Appropriations Committee subcommittee. Proposed rule modifications, known as 19b-4, to list these ETFs were authorized by the commission last month.

Though things were moving forward, Gensler remained unclear about whether Ether belonged in the securities or commodities categories. Rostin Behnam, chair of the Commodity Futures Trading Commission (CFTC), has made it plain that ether should be regarded as a commodity, which stands in stark contrast to the current state of ambiguity.

Regulatory Implications and Industry Reactions

Experts have pointed out that issuers filed spot ETH ETF applications in a way that avoids classifying Ether as security. Nevertheless, the SEC’s removal of staking language from these applications suggests that Ethereum’s proof-of-stake (PoS) mechanism is under scrutiny. Additionally, the SEC has pursued multiple enforcement actions and issued Wells Notices to Ethereum-related entities like Consensys and Uniswap, reinforcing Gensler’s cautious approach.

Given the recent political shifts, inquiries into Ether’s underlying technology might not proceed as initially anticipated. The evolving regulatory landscape highlights the complex and sometimes conflicting views within U.S. financial oversight bodies regarding crypto assets.