U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has reported that the approval process for spot Ethereum exchange-traded funds (ETFs) is "going smoothly." He emphasized that the focus is on asset managers making full disclosures to ensure the effectiveness of their registration statements.
In a recent interview with Bloomberg, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler discussed the current state of crypto regulation and the approval process for spot Ethereum exchange-traded funds (ETFs). The SEC had approved Form 19b-4 for eight spot Ethereum ETFs in May. However, these ETFs cannot be launched until their registration statements (S-1 filings) receive final approval, a step the SEC has not yet completed.
When asked about the timeline for the launch of spot Ether ETFs, Gensler clarified: "What is in front of us — and it’s done at the staff level — is what’s called the registration statements, the disclosure statements. And again, these disclosures are really important. They’re important to investors making investment decisions."
Gensler added, "I don’t know the timing, but it’s going smoothly." He reiterated that the success of this process hinges on asset managers providing comprehensive disclosures to allow the registration statements to go effective.
Importance of Full Disclosure
Gensler stressed the significance of full disclosure by asset managers, noting that the SEC’s division of corporation finance routinely handles this process efficiently. "It’s really about the asset managers making the full disclosure so that those registration statements can go effective," he explained.
Despite not providing a specific timeline, Gensler recently suggested that spot Ether ETFs could potentially launch this summer. However, he did not offer a definitive stance on whether Ethereum (ETH) should be classified as a security or a commodity. Notably, the SEC has ceased its investigation into Ethereum 2.0.
The smooth progress in the approval process highlights the SEC's commitment to ensuring transparency and protecting investors as the cryptocurrency market continues to evolve.
