Ethereum ETF update: Speaking at Bloomberg Invest, CFTC chair Gary Gensler says application is ‘going smoothly’
Securities and Exchange Commission Chairman Gary Gensler belied his impatience when answering reporters’ questions about cryptocurrencies, including his agency’s handling of applications to launch Ethereum ETFs. Speaking with journalist Anne-Marie Hordern at a Bloomberg Invest event in New York on Tuesday, Gensler accused his interviewer of chasing “clicks” after she asked him several questions related to cryptocurrency policy.
The issue of cryptocurrency ETFs has been controversial during Gensler’s tenure at the SEC, most notably when a federal appeals court last year overturned the agency’s decision to deny applications for a Bitcoin ETF. The court ruling led the SEC to approve these Bitcoin petitions in January, and despite initial indications from Gensler that the Ethereum petitions would be denied, the agency recently indicated that it would approve them.
The apparent change in the agency’s stance has led to continued speculation about how long the process will take. Despite his grumbling, Gensler — a well-known cryptocurrency critic — offered some details.
“I don’t know the timing, but things are going smoothly.” He explained that his team is waiting for asset managers to provide “appropriate disclosures.”
Gensler’s comments came after the Securities and Exchange Commission filings From this spring, the agency noted that the agency may have adopted the position that Ethereum had served as a security for more than a year.
Gensler also explained that Ethereum futures trading has already been approved for ETFs. Last October, the SEC approved futures ETF applications for Valkyrie Investments, VanEck Funds, Proshares, Bitwise Asset Management and five other companies. The pending spot ETF orders will give investors direct exposure to the asset through regulated exchanges.
Once I preached Hailed as a cryptocurrency supporter by many who viewed his tenure teaching a course on the subject at MIT as an endorsement, Gensler has taken a tough stance on the industry over the past few years. Last year alone, the regulator imposed 46 enforcement actions against cryptocurrency-related companies, according to Bloomberg a report.
Gensler placed among the 11 bitcoin ETFs approved by the SEC this year, which currently trade on regulated markets, with what he called the “non-compliant model,” or exchanges that also intentionally trade non-compliant securities. “It’s about really protecting investors and other people who want to access the capital markets,” Gensler said. “It’s about confidence in those markets.”
Gensler declined to answer a question about reports that his stance on cryptocurrencies could cost Joe Biden, his appointee, the election. “My first priority is the American people,” Gensler said. “This is the customer, this is what we stand for.”
