Gary Gensler Claims Issuers, Not SEC, Will Decide Ethereum ETF Launch Date

SEC Chair Gary Gensler's recent statement has stirred discussions in the cryptocurrency community.According to Gensler, the issuers, not the Securities and Exchange Commission (SEC), will determine the timing of Ethereum ETF launches.

This announcement marks a significant shift in approach towards crypto ETFs.

US Ethereum ETFs Approval Hinges on Issuers' Response to SEC

SEC Chair Gary Gensler's recent statements shed light on the approval process for United States-based spot Ether exchange-traded funds (ETFs).Gensler emphasized that the speed of approval depends on how quickly ETF issuers address comments from the Securities and Exchange Commission (SEC).

This means that Ethereum ETF issuers must respond promptly to SEC feedback. A significant development occurred on May 23, when the SEC approved eight 19b-4 filings to list spot Ether ETFs on different US exchanges.

However, these ETFs cannot begin trading on the exchanges until they receive approval for their required S-1 registration statements.Gensler's recent comments clarify that even though the SEC is in charge of the approval process, the ETF issuers are ultimately responsible.

His June 6 statement reads:

These registrants are self-motivated to be responsive to the comments they get, but it's really up to them how responsive they are."

Contrary to some concerns about potential delays, Gensler's remarks indicate that the SEC is committed to making the approval process smooth. This clarification from Gensler contrasts with earlier interpretations of his comments on CNBC, where he suggested that the approval process would take some time."

Many had interpreted this to mean that the SEC might take a cautious approach and delay approvals. Bloomberg ETF analyst Eric Balchunas had previously suggested that the approval process could stretch over weeks or even months.

However, he later revised his estimate, forecasting that approvals could come as early as the first week of July.

Ether ETFs Green Light: Analyst Attributes Approval to Political Influence

Bloomberg ETF analyst James Seyffart, previously surprised by the Ether ETF approval he hadn't expected, shared a theory online.He proposed that SEC commissioner Jamie Lizarraga might have influenced the reversal, given his ties to influential Democrat Nancy Pelosi.

Seyffart discussed his theory on the Bits+Bips podcast from Unchained, mentioning Lizarraga's past as Pelosi's close aide.He suggested that Democratic concerns about crypto ownership might have influenced the decision.

Pelosi, among other House Democrats, backed the Financial Innovation and Technology for the 21st Century Act (FIT21) crypto bill.This bill passed the US House of Representatives on May 22, marking a significant moment for the crypto industry.

According to Seyffart, Lizarraga's background and Democratic concerns about crypto may have contributed to the unexpected approval of Ether ETFs.This theory adds a new perspective to the approval process, hinting at potential political influences.

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