The Securities and Exchange Commission Chair, Gary Gensler, says ETH spot ETF S-1 might be approved this summer.
The Chair of the Securities and Exchange Commission (SEC) anticipates that Ethereum spot ETF S-1s will be approved during the summer. This follows previous rumors regarding the time frame for the S-1 to commence trading. Gensler also addressed the obstacles that decentralized finance (DeFi) presents to anti-money laundering (AML) regulations and the eagerly anticipated Ethereum ETFs.
Gary Gensler Proposes a Summer Deadline
He predicted that the spot ETH ETF S-1 would be approved this summer, which has elicited various responses from the community. During the Senate Appropriations Committee Hearing, the SEC addressed multiple issues related to the agency’s function. Gensler acknowledged the timeframe in his address to legislators, with Senator Hagerty adding:
“I’d be grateful if you could suggest that those applications be approved by the summer’s end.”
????NEW: @SECGov Chairman @GaryGensler just told Senator @BillHagertyTN he envisions $ETH Spot ETF S-1’s will likely be approved by the *end of the summer.*
— Eleanor Terrett (@EleanorTerrett) June 13, 2024
The approval of spot 19b-4 filings on May 23 has resulted in a surge of speculation on social media platforms regarding the anticipated listing date of the Ethereum ETF. This month, Gensler observed that the issuers would ultimately determine the timeframe for listing rather than the SEC. He further stated that the critical factor is their responsiveness to the feedback they receive.
Gary Gensler previously indicated that approvals could be delayed, and analysts such as Eric Balchunas predicted the first week of July. Institutional investors are increasingly drawn to the market as Ethereum ETFs continue to gain momentum in various industry sectors. The price of Ethereum increased by 22% and was trading above $3,700 following the approval of 19b-4 filings. Despite the recent price correction, the market is still optimistic about the future listing, as investors predict a rally.
DeFi Presents Challenges to Anti-Money Laundering Regulations
Gary Gensler addressed decentralized finance’s challenges to anti-money laundering (AML) legislation during the hearing. This is a consequence of the technology’s permissionless nature. Additionally, global regulators have expressed apprehension regarding this matter, citing potential dangers associated with illicit finance.
Sen. Hagerty also recommended that the SEC prioritize regulatory clarity, while Gary Gensler clarified that a lack of rule clarity is distinct from violating the law or not appreciating it.
