Key Points
- The SEC has approved 19b-4 filings for spot Ethereum (ETH) ETF applications from leading firms but hasn’t approved the S-1 filings.
- SEC Chair Gary Gensler declined to comment on the 2024 US presidential elections and the role of digital assets.
The Securities and Exchange Commission (SEC) has given the green light to 19b-4 filings for spot Ethereum ETF applications. These applications were submitted by top asset management companies such as VanEck, BlackRock, and Fidelity. However, the SEC is yet to approve the S-1 filings for these products.
During the Bloomberg Invest Summit in New York, SEC Chair Gary Gensler stated, “I don’t speak about elections.”
Gensler’s Remarks on the Approval Process
Gensler emphasized that the responsibility lies with the asset managers to provide full disclosure so that the registration statements can become effective. He said, “It’s something our Division of Corporation Finance handles hundreds if not thousands of times over anybody’s career. It’s smoothly functioning — it’s really up to the asset managers to make the proper disclosures.”
In related news, Eric Balchunas, a Senior Bloomberg ETF analyst, used social media to predict the approval of spot ETH ETFs by July 2nd. Notably, ETF issuers submitted amended registration statements last week. Balchunas stated that the SEC sent comments on their filings, which were “light” and “nothing major.”
Gensler’s Concerns Over Cryptocurrency Classification
Gensler voiced concerns about the categorization of cryptocurrencies as securities and the lack of compliance by many digital asset firms with its policies. He emphasized the need for the American public to receive the proper disclosure required by law. He stated, “My role as a securities regulator – as chair of this great 5,000-person agency that oversees $120 trillion capital markets – is to look out for investors, look out for issuers and, where appropriate, to be a cop on the beat.”
On the topic of the upcoming 2024 United States presidential elections and the role of the digital asset sector, Gensler declined to comment. He said his primary focus as the Chair of the SEC is “protecting the investors, looking after issuers’ access to markets.”
Meanwhile, former US President and major Republican candidate, Donald Trump, has won the support of the digital asset community by expressing his backing for Bitcoin and other digital assets. He has stated that he would completely ban the creation of a central bank digital currency (CBDC) in the US and accept crypto for campaign donations.
Cathie Wood of ARK Invest, a major Bitcoin supporter, said she would vote for Trump and not Biden. Similarly, the Winklevoss twins, founders of the Gemini crypto exchange, expressed their support for Trump.
