During a budget hearing on Thursday, US Securities and Exchange Commission (SEC) Chair Gary Gensler informed senators that the final approvals for Ethereum’s exchange-traded funds (ETFs) trading are anticipated to be completed by this summer.
Speaking before a subcommittee of the Senate Appropriations Committee, Gensler indicated that the approval process is progressing smoothly following the initial approval of a group of ETFs. While the agency had previously greenlit the initial round of applications, Gensler noted that the final registration requirements, known as S-1 filings, are now being processed at the staff level.
Once these filings receive approval, the new ETFs can be listed, facilitating easier access to the broader market for funds holding actual ether, similar to the establishment of earlier bitcoin spot ETFs. Notably, the SEC had initially resisted efforts for bitcoin ETFs until a federal court intervened, compelling the agency to comply with the decision and permit 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 affirmed during the same hearing that ETH is indeed a commodity.
The determination of whether a digital asset is deemed a commodity or security is crucial in determining regulatory oversight, with the SEC responsible for overseeing securities tokens and the CFTC having authority over others. Despite Gensler’s assertion that the majority of digital assets should be categorized as securities, he has refrained from specifying which ones fall under each classification apart from those identified in enforcement actions.
