Gensler Says ‘Stay Tuned’ on U.S. SEC’s Decision on ETH ETF

Although he had emphasized that the court ruling on ETFs had led his agency to change its perspective, when CoinDesk questioned him on Thursday about their plans regarding particular applications for the highly anticipated crypto decision, he was mostly evasive in providing specific details.

“At that moment, Gensler stated, outside an Investment Company Institute function in Washington, that he didn’t find any relevant information on the specified topic in his records.”

After several weeks of minimal interaction, the Securities and Exchange Commission (SEC) requested that exchanges handling spot Ethereum ETF filings resubmit their 19b-4 forms using clear and uniform language earlier this week. These forms were submitted to the SEC by Tuesday, and they became publicly available online that same night. Additionally, the SEC seems to have initiated communications with potential issuers directly, as firms such as Fidelity and Grayscale updated their S-1 forms this week. The SEC needs to make a definitive ruling on at least one spot Ethereum ETF application by the end of Thursday.

According to these filings, the SEC seems uneasy about the prospect of Ether ETF sponsors staking their assets.

As a researcher studying the regulatory landscape of cryptocurrency exchange-traded funds (ETFs), I’ve found that industry insiders have shared with CoinDesk their perspective that this week’s actions by the Securities and Exchange Commission (SEC) might increase the chances of approving these ETFs. However, it’s essential to note that the SEC’s decisions do not guarantee approval, but they certainly make it a more promising scenario.

As a crypto investor, I’ve been closely following the recent developments in the regulatory landscape. When the DC Circuit rendered their decision with a different perspective, I took note and adjusted my investment strategy accordingly.

As a crypto investor, I’ve closely followed the developments regarding the recent passing of the crypto bill in the House of Representatives. However, I want to emphasize that I, along with many others in the community, share the concerns expressed by SEC Chairman Gensler. He reaffirmed on Thursday that the Securities and Exchange Commission (SEC) will persist in its efforts to oppose this bill.

He went on to explain, “In this particular area, the individuals in charge aren’t providing the necessary disclosures as mandated by law. It’s not an accusation against any specific one of them, but rather a concern for investors who could potentially gain from such information.”

“We’ve seen leaders in this field find themselves on a pathway to jail or extradition,” he added.

When questioned about Congress aiming to overturn the Securities and Exchange Commission’s (SEC) cryptocurrency accounting rule, Staff Accounting Bulletin No. 121 (SAB 121), he defended the agency’s intent by explaining that during a time when distressed crypto businesses were required to regard customer assets as their own in bankruptcy proceedings, the SEC intended SAB 121 as advisory guidance.

“Gensler stated that the cryptocurrencies reported by these companies as being under their custody have become part of the bankruptcy estate. We tackled this issue back in 2022, referring to it as a mere accounting bulletin.”