- Gensler’s remarks on Ethereum ETFs evoke speculation on SEC’s review pace.
- SEC’s approval of ETH ETF listing requests hints at an evolving stance.
The cryptocurrency community is abuzz with speculation following recent comments by SEC Chair Gary Gensler.
In a report by Reuters, Gensler indicated that the approval process for spot Ethereum [ETH] exchange-traded funds (ETFs) in the United States hinges on the responsiveness of issuers to the SEC’s feedback. He said,
“These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.”
This development has sparked optimism among many who feared prolonged delays, suggesting that the SEC may be moving towards a more accelerated review process.
However, in a separate conversation with the CNBC Squawk Box, Gensler said,
“The underlying exchange trade products still need to go through a process to have the disclosure about that. Now, that will take some time but they are working on that right now.”
Some interpreted this as a sign that the commission might take their time approving the S-1 Forms.
This juxtaposition raises questions about SEC’s stance on the industry.
When discussing the broader crypto market, Gensler said,
“Exchanges like the New York Stock Exchanges (NYSE) get properly regulated to protect against fraud regulation and they don’t trade against you. And these crypto exchanges are doing things that we would never allow NYSE to do.”
How did ETH react?
These diverging remarks caused notable fluctuations in ETH prices. At the time of writing, ETH was changing hands at $3,819.16, reflecting a 0.70% drop in the past 24 hours.
The technical indicator Relative Strength Index (RSI) remained above the 50 mark, indicating significant buying pressure.
Source: TradingView
Grayscale’s role in Ethereum ETF
The SEC’s change in tone on spot Ether ETFs before the deadline remains unexplained.
However, in discussions with Reuters, Gensler hinted that this decision may have been influenced by Grayscale’s legal challenge regarding Bitcoin ETFs from the previous year.
Grayscale had argued that since the SEC approved Bitcoin futures ETFs, there was no reason to deny spot Bitcoin ETFs. Gensler said the case was similar with Ethereum as ETH futures have been trading since last year.
