Securities and Exchange Commission Chair Gary Gensler stated that the final approvals for exchange-traded funds (ETFs) trading Ethereum’s ether (ETH) are expected to be completed by this summer. He mentioned that the approval process is moving smoothly after the initial approval of a group of ETFs. Gensler explained that the remaining registration details, known as S-1 filings, are currently being processed at the staff level. Once these filings are approved, the new ETFs can be listed, providing easier access for investors to trade funds holding actual ether.
During a budget hearing with a subcommittee of the Senate Appropriations Committee, Gensler highlighted the importance of distinguishing between different types of digital assets. He emphasized the need for proper oversight, with the SEC monitoring securities tokens and the CFTC overseeing other tokens. While Gensler refrained from directly answering whether ETH is a commodity, CFTC Chair Rostin Behnam stated that it is.
Gensler expressed concerns about the lack of disclosure and registration among many digital assets, stating that they are violating securities laws. He criticized the industry for disregarding regulations and highlighted the challenges faced by the CFTC in policing a disclosure-based oversight system. Behnam echoed these sentiments, emphasizing the need for additional regulatory tools and resources to effectively monitor the crypto markets.
In addition to addressing digital assets, Behnam discussed the CFTC’s efforts to ban prediction markets related to election outcomes. He emphasized the importance of upholding existing laws and preventing the commoditization of elections through such contracts. Behnam reiterated the agency’s commitment to taking necessary steps to ensure these contracts are prohibited.
Overall, both Gensler and Behnam underscored the importance of regulatory oversight in the crypto industry and the need for clear guidelines to protect investors and maintain market integrity. As the approval process for ether ETFs progresses, it remains essential for regulatory agencies to collaborate and establish effective measures to address the evolving landscape of digital assets.