In a Senate budget hearing on Thursday, US Securities and Exchange Commission (SEC) Chair Gary Gensler indicated that the final approvals for exchange-traded funds (ETFs) trading Ethereum’s ether (ETH) are anticipated to be completed by this summer.
Addressing a subcommittee of the Senate Appropriations Committee, Gensler affirmed that the approval process is progressing smoothly following the initial endorsement of a group of ETFs. While the SEC had previously granted approval for the initial round of applications, Gensler noted that the final registration requirements, known as S-1 filings, are currently under review at the staff level.
Once these filings receive the green light, the new ETFs can be listed, facilitating broader market access to funds holding actual ether, akin to the establishment of earlier bitcoin spot ETFs. Notably, the SEC had initially resisted efforts to introduce bitcoin ETFs until a federal court intervention compelled compliance, subsequently allowing their establishment.
When queried directly about whether ETH qualifies as a commodity, Gensler refrained from providing a definitive answer, maintaining the ambiguous stance his agency has adopted regarding the asset. Meanwhile, Commodity Futures Trading Commission (CFTC) chief Rostin Behnam confirmed during the same hearing that ETH is indeed a commodity.
The classification of digital assets as commodities or securities is pivotal in determining regulatory oversight, with the SEC tasked with overseeing securities tokens and the CFTC holding authority over others. Despite Gensler’s assertion that the majority of digital assets should be deemed securities, he has refrained from specifying which ones fall under each classification, apart from those identified in enforcement actions.
