SEC Chair Reveals Ethereum Spot ETF Set for Summer Approval Amid Regulatory Uncertainty
In a recent Senate Appropriations Committee hearing, SEC Chairman Gary Gensler announced that the final approval for an Ethereum spot ETF is expected to be completed this summer.
The SEC had initially given preliminary approval for the Ethereum spot ETF in May. However, Gensler mentioned that the final registration requirements (the S-1 registration statement) are still being processed by the staff.
During his exchange with Senator Bill Hagerty, Gensler stated, “Issuers are still completing the registration process, and progress is going well.” He added that the listing approval could happen “sometime this summer.”
Industry experts had predicted that the Ethereum spot ETF might begin trading as early as July or August, with November being the latest possible launch date.
When directly asked whether Ethereum is a commodity, Gensler refrained from giving a definitive answer, maintaining the SEC’s longstanding ambiguous stance on Ethereum. Conversely, CFTC Chairman Rostin Behnam, who was also present at the hearing, unequivocally stated, “Yes.”
This distinction is crucial in determining the regulatory oversight of various cryptocurrencies in the United States. The ongoing debate between classifying cryptocurrencies as securities or commodities has been a contentious issue between the SEC and CFTC. Generally, commodities fall under the jurisdiction of the CFTC, while securities are regulated by the SEC.
Although Gensler has often asserted that “the majority of cryptocurrencies should be considered securities,” the SEC has historically only identified specific cryptocurrencies as securities during enforcement actions without providing clear guidelines or rules on how to classify cryptocurrencies as securities.
As the SEC moves closer to potentially approving the Ethereum spot ETF, the broader regulatory landscape for cryptocurrencies remains in flux, leaving market participants eagerly awaiting more definitive guidance.
