From the recent statement made by the current SEC chairperson, Gary Gensler, this means that the primary challenge to the Ethereum ETF introduction in the United States is the action of issuers rather than the speculation within the SEC. That puts the onus on Ethereum ETF issuers to promptly respond to any regulatory comments to keep forward progress on their applications.
On May 23, the SEC approved to launch eight filings for spot Ether ETFs with conditionality to S-1 registration statements. However, Gensler pointed to them on his statement and focused on the fact that the faster the approval or the speed of approval depends on issuers’ reactions to SOC feedback.
This development is a step up for the SEC, suggesting that it could further bring Ethereum based ETFs earlier than expected. According to Bloomberg, the initial approvals can be expected to be granted by as early as July, the calendar year.
Gensler suggested that the previous success by Grayscale in its lawsuit to obtain a BTC ETF must have influenced the SEC on ETH ETFs. This consideration was due to the regulatory approval given to Bitcoin futures ETFs in the US.
Some experts such as Analyst James Seyffart opine that political factors based their assumption by linking SEC Commissioner Jamie Lizárraga to loyal democrats such as Nancy Pelosi could have played some role in shifting the stand of the SEC.
The tensions in Gensler’s sentiments bold a new chapter for Ethereum ETFs, where the spotlight shifts to issuers. Although this shift will only potentially involve specific sub-sectors, it might accelerate the deployment of financial products tied to cryptocurrencies and influence the rest of the crypto space.
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Riz-A is a seasoned blockchain content writer with a passion for demystifying complex concepts and making cutting-edge technology accessible to a broader audience. With years of experience in the blockchain and cryptocurrency space, Riz-A has a proven track record of creating engaging, informative, and thought-provoking content.
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