Amid significant regulatory changes, the U.S. Securities and Exchange Commission (SEC) Partially approved The long-awaited Ethereum ETF filing was filed three weeks ago by prominent asset managers, including BlackRock and Grayscale.
SEC Chairman Gary Gensler has expressed his full approval for these Ethereum ETFs. That could come by the end of the summer, providing much-needed clarity to investors eagerly awaiting this decision.
A Senate hearing revealed the possibility of approval of an Ethereum ETF.
At a Senate Banking Committee hearing Thursday, Chairman Gensler said: respond to queries Senator Bill Hagerty has expressed his belief that a spot Ethereum ETF will likely receive approval by the end of the summer.
this timeline The end of the summer season on September 22 is likely to pave the way for the Ethereum ETF’s S-1 approval in time for the US election in November, when the cryptocurrency has become a key issue in the race for the White House.
The hearing also addressed regulatory issues posed by the rapidly evolving cryptocurrency industry. Senator Richard Durbin inquired about the Commodity Futures Trading Commission’s (CFTC) ability to effectively regulate cryptocurrency assets..
Gensler emphasized the need for an “adequately resourced and well-defined disclosure” regime at the CFTC. Senator Hagerty emphasized the importance of regulatory clarity and urged the SEC to create an ecosystem that prevents offshoring of the cryptocurrency industry.
Gensler is not responsible for illegal activities, personal preferences, Regulatory clarityIt suggests a distinction between dislike of the law and lack of clarity.
Interestingly, Gensler mentioned the SEC’s approval of a futures Ethereum ETF last year, but did not provide a clear answer when asked whether he considers Ethereum a commodity.
This ambiguity highlights the ongoing debate surrounding cryptocurrency classification and jurisdictional disputes between the SEC and CFTC.
CFTC and SEC clash over cryptocurrency classification
It is worth noting that the CFTC previously reaffirmed its position by classifying Ethereum and several other cryptocurrencies as commodities. regulatory oversight Within the digital asset industry.
This contrasts with the position of the SEC, led by Chairman Gensler, which currently designates only Bitcoin as a commodity and leaves other cryptocurrencies, including Ethereum, outside this classification.
The ongoing struggle over cryptocurrency classification has a history, as seen by the CFTC. lawsuit Last year, Ethereum and Litecoin also opposed Binance, which was considered a commodity.
Ultimately, this latest development highlights the need for resolution and regulatory clarity within the cryptocurrency ecosystem to ensure a strong and well-functioning industry.
At the time of writing, ETH was trading at $3,450, down 4% in 24 hours, while Bitcoin was also down more than 3% over the same period, to $66,900.
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