In a recent address, SEC Chairman Gary Gensler broached the topic of Ethereum Spot ETFs, offering subtle insights that may be seen as hints towards potential approval.
Gary Gensler Hints Ethereum Spot ETF Approval
During his discourse, Gary Gensler abstained from prognosticating the SEC’s stance on Ethereum (ETH) ETFs, urging keen observers to “remain vigilant.”
When questioned about the SEC’s reaction to specific proposals regarding the eagerly awaited cryptocurrency verdict, Gensler reiterated that a judicial ruling on ETFs had necessitated a shift in the SEC’s perspective. However, he remained circumspect, withholding additional particulars about the submission in question.
“We operate within the legal framework and interpret the law as adjudicated by the courts, a principle to which I am unwaveringly devoted,” Gensler articulated. He emphasized the agency’s adherence to a recent D.C. Court of Appeals ruling that repudiated the SEC’s stance on spot Bitcoin (BTC) ETFs.
Gensler further commented on the recent cryptocurrency legislation passed by the House of Representatives, reaffirming the SEC’s opposition. “Our engagement will persist,” he declared, voicing concerns over the lack of requisite disclosures from token operators, which are indispensable for investor benefit and mandated by law.
Addressing Congress’s endorsement of the SEC’s crypto accounting directive, Staff Accounting Bulletin No. 121 (SAB 121), Gensler defended the guidance, explaining its intent during a period when insolvent crypto firms were commingling customer assets with their own.
Additionally, Gensler warned that prominent figures in the cryptocurrency domain might face incarceration or extradition proceedings if they operate from foreign jurisdictions.