In a major regulatory shift, the U.S. Securities and Exchange Commission (SEC) Partially approved The long-awaited ETF filings were made three weeks ago by prominent asset managers, including BlackRock and Grayscale.
SEC Chairman Gary Gensler has indicated full approval for Ethereum ETFs It could come by the end of the summer, providing much-needed clarity to investors who have been eagerly awaiting that decision.
Senate hearing reveals potential approval of Ethereum ETFs
During a Senate Banking Committee hearing on Thursday, Chairman Gensler said: Respond to inquiries Senator Bill Hagerty expressed his belief that Ethereum ETFs will likely receive approval by the end of the summer.
this timetable This aligns with the end of the summer season on September 22, which could pave the way for S-1 approval of Ethereum ETFs just in time for the US elections in November, with cryptocurrencies becoming a prominent issue in the race for the White House.
The hearing also touched on the regulatory challenges posed by the rapidly evolving cryptocurrency industry. Senator Richard Durbin inquired about the ability of the Commodity Futures Trading Commission (CFTC) to effectively regulate crypto assets.
Gensler highlighted the need for “adequate resources and a well-defined disclosure regime” at the CFTC. Senator Hagerty stressed the importance of regulatory clarity, urging the SEC to strengthen the ecosystem that prevents outward migration of the cryptocurrency industry.
Gensler responded by distinguishing between illegal activities and personal preferences and need Regulatory clarityWhich suggests a distinction between disliking the law and lack of clarity.
Interestingly, Gensler noted the SEC's approval of Ethereum futures ETFs last year, but declined to provide a specific answer when asked if he considered Ethereum a commodity.
This ambiguity highlights the controversy over the classification of cryptocurrencies and the jurisdictional dispute between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
CFTC and SEC clash over classification of cryptocurrencies
It is worth noting that the CFTC had previously reaffirmed its position, classifying Ethereum and several other cryptocurrencies as commodities, further fueling the battle for… Regulatory oversight In the digital assets industry.
This contrasts with the position of the Securities and Exchange Commission, led by Chairman Gensler, which currently classifies only Bitcoin as a commodity, leaving other cryptocurrencies, including Ethereum, outside of this classification.
The ongoing struggle over the classification of cryptocurrencies has a history, which the CFTC represents lawsuit Versus Binance last year, where Ethereum and Litecoin were also considered commodities.
Ultimately, this latest development underscores the need for resolution and regulatory clarity within the cryptocurrency ecosystem to ensure a strong and well-functioning industry.
At the time of writing, ETH is trading at $3,450, down 4% in the 24-hour time frame, led by Bitcoin, which also fell to the $66,900 level, down more than 3% in the same time frame.
Featured image of DALL-E, chart from TradingView.com
