- Gensler’s comments on Ethereum ETFs raise speculation about SEC review pace.
- SEC approval of ETH ETF listing requests signals an evolving stance.
The cryptocurrency community is abuzz with speculation following recent comments from SEC Chairman Gary Gensler.
In a report by ReutersGensler indicated that the approval process for spot Ethereum [ETH] Exchange Traded Funds (ETFs) in the United States depend on the extent to which issuers respond to the SEC’s feedback. He said,
“These registrants are motivated to respond to the comments they receive, but it is really up to them how responsive they are.”
This development has sparked optimism among many who feared lengthy delays, indicating that the SEC is moving toward an expedited review process.
In a separate conversation with the CNBC Squawk Boxsaid Gensler,
“The underlying currency trading products still need to go through a process to be made public about them. That will take some time, but they are working on it now.”
Some interpreted this as a sign that the committee would take its time approving the S-1 forms.
This juxtaposition raises questions about SEC’s stance on the industry.
When discussing the broader crypto market, Gensler said:
“Exchanges like the New York Stock Exchanges (NYSE) are well regulated to protect against fraud regulation and they do not trade against you. And these crypto exchanges are doing things that we would never let NYSE do.”
How did ETH react?
These differing comments caused notable fluctuations in ETH prices. At the time of writing, ETH was changing hands at $3,819.16, reflecting a decline of 0.70% in the past 24 hours.
The technical indicator Relative Strength Index (RSI) remained above 50, indicating significant buying pressure.
Source: TradingView
Grayscale’s Role in Ethereum ETF
The SEC’s change in tone on spot Ether ETFs before the deadline remains unexplained.
However, in conversations with Reuters, Gensler hinted that this decision may have been influenced by Grayscale’s legal challenge regarding Bitcoin ETFs the previous year.
Grayscale had argued that since the SEC approved Bitcoin futures ETFs, there was no reason to deny spot Bitcoin ETFs. Gensler said the case was similar to Ethereum, as ETH futures have been trading since last year.