SEC Chair Clarifies Approval of Bitcoin ETFs, No Plans for Ethereum ETFs
Securities and Exchange Commission (SEC) Chair Gary Gensler confirmed that the recent approval of spot bitcoin exchange-traded products (ETPs) only applies to bitcoin and does not indicate imminent approval for spot Ethereum ETPs. The SEC approved 11 spot bitcoin ETPs on January 10 after a court decision required the agency to re-review Grayscale’s spot bitcoin ETP application.
Gensler emphasized that the disclosure for investors in bitcoin funds has improved since their listing on stock exchanges, which has increased competition and led to lower fees. However, the prospects for a spot Ethereum ETP remain uncertain, with experts offering differing opinions. Notably, Fidelity and BlackRock have both filed applications for a spot Ethereum ETP.
Ongoing Lawsuits Against Binance and Coinbase
The SEC is currently involved in two lawsuits against major crypto exchanges Binance and Coinbase. The agency has argued in court against dismissing these cases. In June, the SEC sued Binance Holdings and its former CEO Changpeng Zhao for alleged misconduct, including lying to customers and operating as an unregistered exchange. The SEC also identified 12 tokens on the exchange as securities.
In a separate lawsuit filed in June, the SEC accused Coinbase of operating as an unregistered exchange, broker, and clearing agency. When asked about these ongoing court hearings, Gensler deferred to enforcement staff and litigators but urged caution for investors interested in crypto securities, advising them to be aware of potential risks associated with non-compliant token operators.
Hot Take: No Immediate Approval for Ethereum ETFs
SEC Chair Gary Gensler clarified that the recent approval of bitcoin exchange-traded products (ETPs) does not extend to Ethereum. While experts speculate on the possibility of an Ethereum ETP approval in the near future, Gensler’s remarks indicate that investors should not expect immediate action from the SEC. The ongoing lawsuits against Binance and Coinbase further highlight the regulatory challenges faced by crypto exchanges. It remains to be seen how these legal battles will unfold and impact the broader crypto industry.
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