Gensler: Spot ETH ETF Approval Unlikely

In testimony before the Senate Appropriation Committee on Thursday morning, Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), stated that he anticipates the approval of Spot ETH ETF at some point this summer.

Gensler responded that he “would envision sometime throughout this summer” when Senator Bill Hagerty (R-TN) inquired about the timetable for approving spot ETH ETFs.

SEC Chair Gary Gensler Sets Spot ETH ETF Approval For This Summer

Although the SEC Chair acknowledged that “individual issuers are still working through the registration process,” he asserted that the spot ETH ETF approval process was proceeding “smoothly.”

“If you suggest that those applications will be approved by the end of the summer, I am grateful,” Hagerty stated.

Nevertheless, Gensler expressed apprehension regarding finalizing an approval date for the eagerly anticipated ETF, asserting that each applicant’s registration statements “must contain the appropriate disclosures” to be effective.

“I would argue that the crypto field has been largely non-compliant with the disclosure-based regime that we have at the SEC,” he continued.

Gensler Criticizes the Regulatory “Non-Compliance” of the Crypto Sector

Applicants are currently anticipating a decision regarding their S-1 forms. The federal regulator’s approval of spot ETH ETF candidates’ 19b-4 forms is contingent upon completing the basic registration form, which is the final requirement. This authorization was granted on May 23.

“I am eager to observe the modifications in the subsequent batch of amended S-1s,” wrote ETF specialist Nate Geraci on X. “It is impossible that there is that much work remaining.”

Gensler, recognized for his regulation-by-enforcement approach to digital assets for an extended period, did not mitigate his stringent reputation during his testimony to the Senate committee regarding his agency’s federal budget.

“The crypto industry is currently not serving the public well,” he stated.

The SEC Chair, in particular, criticized the widespread practice of co-mingling financial activity at exchanges throughout the digital asset sector, which is detrimental to the interests of consumers.

Gensler continued, “The events that transpired at FTX are exceedingly prevalent; however, they are not exceptional.” “It has transpired in numerous locations.”

There is a co-mingling of intermediaries who present themselves as exchanges. Still, they engage in various activities to prioritize their interests over their consumers.

However, the regulator’s investigation of the blockchain industry hasn’t yet impeded the federal agency’s approval process for exchange-traded products based on cryptocurrencies.