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SEC Calls For Comment On Spot Ethereum Approval
The United States Securities and Exchange Commission (SEC) is seeking public input regarding the potential approval of a spot Ethereum (ETH) ETF, according to an April 2 court filing. The SEC called for comments specifically on Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.
Proposed Rule Change
According to the most recent court documents, the federal agency is looking “to solicit comments on the proposed rule change” from “interested persons.” The proposed rule change aims to perfect the mechanism of a free and open market and protect investors and the public interest by facilitating the listing and trading of an additional type of exchange-traded product that will enhance competition among market participants.
Spot ETH ETF Approval Odds
News of the SEC’s request for public comment follows the agency’s January 2024 approval of several spot Bitcoin ETFs, which has led to speculation about the potential mainstream adoption of cryptocurrencies in the future. Spot Bitcoin ETFs have already surpassed the market capitalization of traditional silver ETFs, drawing significant inflows in recent weeks.
Regulatory Outlook
SEC Chair Gary Gensler has cautioned that the approval of spot Bitcoin ETFs does not indicate a blanket approval for all crypto asset securities. The regulatory stance on crypto assets remains cautious, with experts estimating slim chances for spot Ethereum ETF approval by May.
A Regulatory Divide At The SEC?
Under Gensler’s leadership, the SEC has maintained a regulatory stance on cryptocurrencies, emphasizing enforcement actions over clear regulatory guidelines. The commission’s Director of Enforcement Division criticized the crypto sector for non-compliance, while SEC Commissioner Hester Pierce expressed dissent over the agency’s enforcement approach.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
