Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), said at a recent Senate hearing that despite the current lack of clarity on whether Ethereum is classified as a commodity, the regulator expects to approve an application for a spot Ethereum ETF sometime this summer. Such approval would be the final step before the fund is launched in the United States.
Gensler confirmed that the ETFs would be able to launch by the end of the summer, well ahead of the presidential election in November.
The regulator recently approved the relevant 19b-4 filings that the stock exchanges submitted in May. However, the S-1 registration forms for individual issuers are still pending approval.
At a hearing on June 13, Gensler said: "Individual issuers are still going through the registration process and everything is progressing smoothly." Senator Bill Hagerty praised this and emphasized the importance of occupying the market first.
Issues with listing timeline and product classification
Gensler's timeline is consistent with predictions by industry experts.
Bloomberg ETF analysts expect that approval of the S-1 filing could take weeks to months after 19b-4 is approved. Others, including JPMorgan Chase & Co., have also predicted that the ETFs will begin trading before the November election.
Although the S-1 approval has not yet been completed, the launch of a spot Ethereum ETF in the U.S. has become an inevitable trend. Many industry insiders, including legal experts, now regard Ethereum as a commodity.
However, when questioned by the Senate, Gensler did not clearly state whether Ethereum is classified as a security or a commodity, and he dodged the question without giving a clear answer.
Meanwhile, Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), explicitly told the Senate that Ethereum is a commodity and should be regulated by the agency.
SEC Budget Challenges and Market Regulation Responsibilities
Gensler also addressed the SEC’s fiscal year 2025 budget request, highlighting the significant growth and changes in the market. "Our limited resources stand in stark contrast to the tremendous growth and change in the market," he noted.
The SEC currently regulates approximately 40,000 entities, including more than 13,000 registered funds, 15,400 investment advisers and 3,300 broker-dealers.
Gensler expressed concern about a provision in the House Appropriations Committee’s fiscal 2025 appropriations bill for the agency that limits funding for enforcement actions related to digital asset transactions, with the exception of fraud or market manipulation.
“This will severely undermine our efforts,” he warned. “While not all cryptocurrencies are crypto-securities…those that do are obligated to disclose full, fair, and complete information to the public.”
The SEC Chairman emphasized the critical role the agency plays in maintaining market integrity and protecting investors, and stressed the importance of adequate funding to keep pace with rapidly evolving markets and technological advances. #SEC #Gensler #以太坊ETF批准预期
“The SEC is the police on patrol that oversees the investing public and issuers,” he told the Senate.
Conclusion:
Gary Gensler's speech at the Senate hearing paved the way for the approval of the spot Ethereum ETF, which not only symbolizes the gradual acceptance of cryptocurrencies by regulators, but also reflects the market's strong demand for compliant investment channels. Although the asset characterization of Ethereum has yet to be clarified, its importance in the financial field has already emerged.
At the same time, Gensler's concern about the SEC's budget highlights the regulatory challenges and emphasizes the necessity of adequate resources to maintain market order and protect the interests of investors. The upcoming spot Ethereum ETF heralds the further maturity of the cryptocurrency investment environment, bringing safer and more transparent investment options to market participants, while injecting momentum into the industry's continued innovation.
