Key Points
- SEC Chair Gary Gensler remains non-committal on approval of spot Ethereum ETFs.
- Gensler has expressed concerns about abuses and fraud in the cryptocurrency field.
Gary Gensler, Chair of the Securities and Exchange Commission (SEC), has refrained from giving any clear indications on the approval of spot exchange-traded funds (ETFs) for Ethereum.
During an interview with Yahoo Finance, Gensler was asked about the numerous companies that have submitted applications for a spot Ethereum product. He was also questioned about his views on a court ruling involving Grayscale earlier this year.
Gensler's Stance on Ethereum ETFs
"I don't want to prejudge any one filing, and as you said, there's 10 filings in front of us," Gensler stated. He added that the SEC examines the facts and circumstances of each case.
Well-known companies such as BlackRock and Fidelity submitted applications for spot Ethereum ETFs in November. Other firms like Franklin Templeton, Ark 21Shares, VanEck, and Grayscale have followed suit. Some experts believe the SEC might approve a spot Ethereum ETF, considering that ether futures ETFs are already trading.
Previous Court Ruling and Concerns about Cryptocurrency
A D.C. court ruling during the summer ordered the SEC to reconsider Grayscale Investments' proposal for a spot Bitcoin ETF. The SEC later approved spot Bitcoin ETFs. However, Gensler has stated that the approval should be specific to Bitcoin ETFs only.
Gensler, who has previously stated that most cryptocurrencies are securities, has called for firms to register with the SEC. He voiced concerns about the challenges in the cryptocurrency field during the interview.
"The whole field is rife with abuses and fraud," Gensler stated. He pointed out the series of bankruptcies in 2022 and 2023, blaming intermediaries for not providing the necessary disclosures to investors. He criticized these intermediaries for practices that would not be permitted on traditional exchanges like the New York Stock Exchange.
