In this struggling cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) is nearing the final stages of approving spot Ethereum exchange-traded funds (ETFs) to go live this September. During a budget hearing, SEC Chair Gary Gensler shared his thoughts regarding the spot Ether (ETH) ETF with the Senate Appropriations Committee.SEC Chair Gary Gensler on Spot Ethereum ETF
According to the report, Gensler assured the committee that the approval process for Ethereum ETFs is progressing smoothly. The SEC had previously granted initial approvals for a group of ETFs, and the final registration requirements, known as S-1 filings, are now being processed at the staff level. Once these filings are approved, these new ETFs can be listed, providing wider market access to funds that hold actual ether.
The SEC had initially resisted approving Bitcoin ETFs until a federal court ruled that the agency was mishandling the matter. Since then, Gensler stated, the SEC has complied with the court’s decision and allowed Bitcoin (BTC) ETFs.
However, during the hearing, when someone asked if ETH is a commodity or not, Gensler maintained silence and did not respond, maintaining the agency’s ambiguous stance on the classification of ETH. Meanwhile, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, who was also present at the hearing, confirmed that ETH is a commodity.
This distinction is crucial for determining regulatory oversight. The SEC oversees securities tokens, while the CFTC governs commodities. Gensler reiterated that most digital assets should be considered securities and highlighted that many tokens are currently unregistered, violating securities laws.Why lack of Crypto regulations from the SEC and CFTC?
Gensler, who has led both the SEC and the CFTC, criticized the crypto industry for ignoring regulations and suggested that the CFTC is not equipped to manage a disclosure-based regulatory system like the SEC.
Behnam acknowledged these challenges and cited that the CFTC lacks the traditional regulatory tools such as registration, custody, surveillance, and oversight that have supported American capital and derivative markets. He also highlighted that the CFTC would require additional authorities and a larger budget to effectively oversee the expanding crypto market.
Despite all these discussions, the overall cryptocurrency market is still down by 0.6%. Top cryptocurrencies like BTC, ETH, and Solana (SOL) are experiencing downward moves. In the last 24 hours, BTC, ETH, and SOL have experienced a 0.7%, 0.8%, and 2.2% price drop, respectively.
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