In a recent live television appearance, United States Securities and Exchange Commission (SEC) Chair Gary Gensler once again criticized the crypto industry, but this time, his tone was noticeably softer when discussing the potential for future crypto ETFs.
Here’s what you should know.
Future of Crypto ETFs: Is the SEC Coming Around?
During an interview on CNBC’s “Mad Money,” host Jim Cramer asked Gensler about the chances of introducing ETFs for other cryptocurrencies. Cramer highlighted coins like Polkadot, Cardano, Cosmos, Bonk, Osmosis, and Ronin, which had traded millions of dollars that morning.
Cramer remarked on the high trading volumes, saying, “I would think that Bonk is a natural, and Osmosis. These are millions of dollars these things are trading – shouldn’t we have some sort of product?”
Gensler’s Response
When asked about the possibility of a BONK ETF, Gensler avoided a direct answer. He pointed out that many crypto tokens lack the necessary information for investors to make informed decisions, suggesting these tokens are unregistered securities. He emphasized the need for proper regulation to protect against fraud and manipulation in the crypto market.
“You might have seen the bankruptcies in this space, with the most prominent figures in this field either in jail, about to go to jail, or awaiting extradition.”
Gary Gensler
Gensler also criticized crypto exchange platforms for engaging in practices that would be unacceptable on traditional stock exchanges like the New York Stock Exchange. This statement underscored his concerns about the industry’s current regulatory framework.
Any Hope for Ethereum ETFs?
Addressing the recent Ethereum spot ETF approvals, Gensler stated that it would take time before their registration statements are approved and they can be listed on public exchanges.
This cautious optimism suggests that with the right regulations, a broader range of cryptocurrency ETFs could be on the horizon, starting with Ethereum.
An Urgent Call for Transparency
Despite his criticisms, Gensler’s softened tone indicates a possible future where more crypto ETFs could be approved, provided the market sees significant improvements in transparency and oversight. He made it clear that the crypto market needs substantial regulatory advancements before it can be considered on par with traditional financial markets.
Read Also: New Law Empowers U.S. President to Block Crypto Transactions
