SEC Chair Gary Gensler’s recent statement has sparked discussions within the cryptocurrency community. Gensler emphasized that the timing of Ethereum ETF launches will be determined by the issuers rather than the SEC. This represents a significant shift in approach towards crypto ETFs.
The approval process for US-based spot Ether exchange-traded funds (ETFs) was clarified by Gensler. He stated that the speed of approval depends on how promptly ETF issuers address comments from the SEC. This means that Ethereum ETF issuers must respond promptly to SEC feedback.
On May 23, the SEC approved eight 19b-4 filings to list spot Ether ETFs on different US exchanges. However, these ETFs cannot begin trading until they receive approval for their required S-1 registration statements. Gensler’s recent comments make it clear that while the SEC oversees the approval process, the ultimate responsibility lies with the ETF issuers.
In a statement on June 6, Gensler emphasized that ETF issuers are self-motivated to be responsive to SEC comments, highlighting the importance of their responsiveness. Contrary to concerns about potential delays, Gensler’s remarks indicate that the SEC is committed to ensuring a smooth approval process.
Bloomberg ETF analyst James Seyffart shared a theory suggesting that SEC commissioner Jamie Lizárraga’s ties to influential Democrat Nancy Pelosi may have influenced the approval of Ether ETFs. Seyffart mentioned Lizárraga’s past as Pelosi’s close aide and speculated that Democratic concerns about crypto ownership might have played a role in the decision.
Pelosi and other House Democrats supported the Financial Innovation and Technology for the 21st Century Act (FIT21) crypto bill, which passed the US House of Representatives on May 22. Seyffart’s theory adds a new perspective to the approval process, hinting at potential political influences.