US Senators Criticize SEC as Ethereum ETFs Near Approval

US Senators Criticize SEC as Ethereum ETFs Near Approval

SEC Chairman Gary Gensler has provided insight into the timeline for the approval of Ethereum exchange-traded funds (ETFs), indicating that these financial products could receive final approvals “sometime over the course of this summer.” Gensler made this statement during a June 13 hearing of the US Senate Committee on Appropriations in response to a question from Senator Bill Hagerty of Tennessee regarding the ETF approval process.

Gensler mentioned that the approval process is “working smoothly” and that issuers of the ETFs are currently undergoing administrative procedures with the SEC staff. This comes after the unexpected approval of the 19b-4 document for eight spot Ether ETFs on May 23, which has raised questions about the timing for these products to start trading. While some market stakeholders predict trading could begin as early as July, others suggest it might not be until November.

Senior Bloomberg ETF analyst Eric Balchunas noted that issuers are still awaiting feedback from the SEC Division of Corporation Finance on their S-1 filings. He highlighted the political dynamics that might be influencing the process, stating that the Division of Corporation Finance is reviewing these documents for the first time due to a likely last-minute political shift. Bloomberg ETF analyst James Seyffart also commented, indicating that while predictions for a July launch were speculative, he remains confident that ETH ETFs will debut at some point this summer.

Meanwhile, the SEC’s regulatory actions have faced criticism from US Senators. Senator Hagerty criticized Gensler’s approach, suggesting it has hindered the US from becoming a leader in the crypto industry. Hagerty tweeted, “Gensler’s failure to provide clear rules of the road for crypto is pushing the industry overseas. Crypto innovation creates jobs, drives technological progress, and spurs economic growth—it should be happening here in America.”

The Commodity Futures Trading Commission (CFTC) has also come under scrutiny. Senator Dick Durbin questioned the agency’s capability to effectively regulate the rapidly evolving and expansive world of cryptocurrency under the leadership of Rostin Behnam.

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