Gary Gensler Addresses Ethereum ETF Question: Security or Commodity?

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), reiterated his stance on cryptocurrencies during a recent television appearance. When asked about Ether ETFs, he stated, “These requests are currently under consideration… A 5-member commission will make a decision,” yet he refrained from disclosing further details.

Similar Remarks on Cryptocurrencies

In light of the recent revelation that the SEC had issued a “Wells notice” to Robinhood, a platform for both crypto and stock trading, Chairman Gary Gensler engaged with the American media. Speaking on CNBC, he fielded questions from renowned financial journalist Andrew Ross Sorkin, echoing sentiments consistent with his previous statements.

“Majority of Crypto as Securities”

Gensler emphasized that while the media frequently probes cryptocurrencies, this domain represents only a fraction of the markets under their oversight, which exceeds $100 trillion. He articulated, “Half of this comprises stock markets… Cryptocurrencies, on the other hand, constitute a significantly minor portion subject to our regulation… Yet, a substantial portion of these cryptocurrencies operate outside the framework of laws we enforce.”

He pointed out the discrepancy between the media’s focus on crypto and the SEC’s broader mandate over capital markets. Despite this, Gensler noted, “A considerable portion of the crypto sphere comprises securities. We do not see any of them providing disclosures. Where are the disclosures, statements, and information regarding these tokens? Without these, we cannot safeguard investors.”

Ether: Security or Commodity?

Whether Ethereum qualifies as a security or a commodity and the possibility of future Ethereum ETFs, Gensler redirected attention to investor protection. He remarked, “The real question here is… How can American investors be safeguarded in this context? Currently, essential disclosures are not being made in this space. Broker-dealers are engaging in activities that we would never allow. They could not do what they are doing now on the New York Stock Exchange. The NYSE does not and cannot trade against its clients…”

Response to McHenry’s Accusations

Responding to Patrick Henry, chairman of the Financial Services Committee in the U.S. Congress, who accused him of misleading the committee regarding whether Ether is a security, Gensler asserted, “We always communicate directly with Congress. We explain what we are doing to them. We do not comment on many issues, whether we have initiated an investigation or not. If we are ultimately going to file a lawsuit, we do. As I said, I have to remain silent on this matter.”

“Ethereum ETFs Under Consideration” without Disclosure

When queried about the potential approval or rejection of Ether ETFs, Gensler disclosed, “The matter of Ether ETFs is currently on our commission’s table… A decision will be made by a 5-member commission in the future,” withholding further details on the subject.

Leave a Reply

Your email address will not be published. Required fields are marked *