In a recent Senate Appropriations Committee subcommittee meeting, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler suggested that full regulatory approval for spot Ether (ETH) ETFs could be finalized by the end of September.
During the June 13 budget hearing, Gensler noted that the final batch of filings, known as S-1s or registration of securities, has entered the staff review stage. The SEC had already approved the proposed rule changes to list spot ETH ETFs, referred to as 19b-4, last month.
Despite confirming that Ethereum ETFs are likely to begin trading soon, Gensler remained ambiguous regarding Ether’s classification as an asset, avoiding a definitive stance on whether it should be considered a commodity or a security.
In contrast, Rostin Behnam, Gensler’s counterpart at the Commodity Futures Trading Commission (CFTC), has taken a clear position. When asked if Ether should be classified as a commodity, Behnam responded affirmatively, “Yes.”
Experts have observed that issuers submitted spot ETH ETF applications in a manner suggesting they are non-securities. However, the official regulatory approach toward the asset remains uncertain. Notably, the removal of staking language from applications indicates that Ethereum’s proof-of-stake (PoS) consensus mechanism may be under SEC scrutiny.
The SEC has initiated several enforcement actions and issued Wells Notices to Ethereum-related entities such as Consensys and Uniswap, reflecting Gensler’s cautious perspective. However, considering recent political developments, further investigations into Ether’s underlying technology might be stalled.
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