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Gary Gensler Says Issuers, Not SEC, Will Decide Ethereum ETF Launch Date
SEC Chairman Gary Gensler’s recent statement has sparked discussion in the cryptocurrency community. According to Gensler, issuers, and not the Securities and Exchange Commission (SEC), will determine the timing of the launch of Ethereum ETFs.
This announcement marks a significant shift in the approach towards Crypto ETFs.
Approval of US Ethereum ETFs depends on issuers’ response to the SEC
Recent statements from SEC Chairman Gary Gensler have shed light on the approval process for US-based Ether spot exchange-traded funds (ETFs). Gensler stressed that the speed of approval depends on how quickly ETF issuers respond to comments from the Securities and Exchange Commission (SEC).
This means that Ethereum ETF issuers must respond to SEC feedback in a timely manner. A significant one development occurred on May 23, when the SEC approved eight 19b-4 filings to list Ether spot ETFs on several U.S. exchanges.
However, these ETFs cannot begin trading on exchanges until they receive approval for the required S-1 registration statements. Gensler’s recent comments make it clear that while the SEC is responsible for the approval process, ETF issuers are ultimately responsible.
Its June 6th declaration it is read:
“These registrants are self-motivated to respond to the comments they receive, but it’s really up to them how responsive they are.”
Contrary to some concerns about potential delays, Gensler’s remarks indicate that the SEC is committed to streamlining the approval process. This clarification by Gensler contrasts with his previous interpretations comments on CNBCwhere he suggested that the approval process “will take some time.”
Many had interpreted this to mean that the SEC might take a cautious approach and delay approvals. Bloomberg ETF analyst Eric Balchunas had previously he suggested the approval process could take weeks or even months.
However, it later revised its estimate, predicting that approvals could come as early as the first week of July.
Green light for ether ETFs: analyst attributes approval to political influence
Bloomberg ETF Analyst James Seyffart, previously surprised by an Ether ETF approval he didn’t expect, shared a theory online. He proposed that SEC Commissioner Jamie Lizárraga may have influenced the turnaround, given his ties to the influential Democrat Nancy Pelosi.
Seyffart discussed his theory on Unchained’s Bits+Bips podcast, mentioning Lizárraga’s past as a close associate of Pelosi. He suggested that Democratic concerns about cryptocurrency ownership may have influenced the decision.
Pelosi, among other House Democrats, supported the Financial Innovation and Technology for the 21st Century Act (FIT21) cryptographic law. This bill passed the US House of Representatives on May 22, marking a significant moment for the cryptocurrency industry.
According to Seyffart, Lizárraga’s background and Democratic concerns about cryptocurrencies may have contributed to the unexpected approval of Ether ETFs. This theory adds a new perspective to the approval process, suggesting potential political influences.
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