In a recent statement, Securities and Exchange Commission (SEC) Commissioner Hester Peirce affirmed that spot ether exchange-traded funds (ETFs) won’t require legal battles for approval. Her remarks shed light on the SEC’s stance and the potential future of crypto-based ETFs. This development follows the SEC’s recent approval of multiple spot bitcoin ETFs, raising questions about the fate of similar products for Ethereum.
Spot Ether ETFs under scrutiny
Hester Peirce emphasized that the SEC’s approach to approving spot ether ETFs would follow established procedures without the need for protracted legal disputes. She advocated for applying the same considerations to these products as to their counterparts, avoiding arbitrary and capricious decisions.
The recent green light given to nearly a dozen spot bitcoin ETFs by the SEC raised hopes for other crypto-based ETFs. Entities like BlackRock, Ark 21Shares, and Grayscale expressed interest in launching spot ether ETFs, paralleling their previous efforts with bitcoin.
Grayscale, a major player in the cryptocurrency investment space, is actively working on converting its Ethereum Trust into an ETF. This strategic move mirrors its successful transformation of a bitcoin trust into an ETF.
SEC chair Gensler’s cautious stance
However, SEC Chair Gary Gensler has expressed a more cautious stance regarding future approvals. While celebrating the recent success with spot bitcoin ETFs, he made it clear that this action was specific to ETFs holding non-security commodities like Bitcoin. Gensler underlined that it should not be interpreted as a willingness to approve listing standards for crypto asset securities broadly.
Hester Peirce’s critique on regulatory delay
Commissioner Hester Peirce criticized the SEC for delaying approval of crypto-based ETFs, asserting that they could have been authorized years ago if the SEC had applied consistent standards. She suggested that the SEC had waited for a court decision to spur action.
Hester Peirce has been a vocal advocate for a more predictable and straightforward approach to crypto regulation. She has questioned the SEC’s tendency to rely on enforcement actions rather than providing clear regulatory guidelines.
Looking ahead
As the crypto market continues to evolve, the future of spot ether ETFs remains uncertain. While Commissioner Peirce urges a streamlined approval process, the cautious stance of Chair Gensler highlights the complexity of regulatory decisions in the crypto space. The recent approval of spot bitcoin ETFs has ignited hopes but doesn’t guarantee a similar outcome for other crypto assets. Investors and crypto enthusiasts will closely monitor the SEC’s actions and regulatory developments in the coming months.
The SEC’s approach to spot ether ETFs is a topic of significant interest in the crypto community. While Commissioner Hester Peirce advocates for a straightforward approval process, Chair Gensler’s caution serves as a reminder of the unique challenges posed by crypto asset regulation. The recent approval of spot bitcoin ETFs serves as a precedent, but the road ahead for spot ether ETFs remains uncertain.
