SEC President reaffirms that most cryptocurrencies are securities before decision on Ethereum ETF

Even with a change in stance regarding spot Ethereum exchange-traded funds (ETF) with a potential approval of the products by the US Securities and Exchange Commission (SEC), the Agency’s president, Gary Gensler, continues to maintain his position on cryptocurrencies.

Faced with the prospect of approval of Ethereum ETFs on May 23, Gensler once again reaffirmed that most cryptocurrencies are securities during public statements today, before the decision on the products, according to information from The Block.

According to the publication, in his recent appearance, the SEC chairman said: “There are 15 thousand or 20 thousand tokens in this field. They do not function as currency.”

“Without pre-judging any of them, [eles] they usually have a group of entrepreneurs, and the public is looking at white papers, looking at websites, looking at this kind of group of entrepreneurs and investing based on this group of entrepreneurs. it kind of fits the classic Supreme Court test of what a security is,” he said.

When asked about the SEC’s ability to regulate the cryptocurrency industry, Gensler highlighted his belief that most cryptoassets are securities. “Not every cryptographic token is a security… but I believe, again without prejudice, that most are,” he added.

US Lawmakers Ask SEC to Approve Ethereum ETF

A group of bipartisan US lawmakers have called on the Securities and Exchange Commission (SEC) to consider approving spot Ethereum Exchange Traded Funds (ETFs). The request was made through a letter that gathers signatures from five members of the House Financial Services Committee, including representatives from both political parties, led by Representative French Hill.

The submitted document highlights the recent approval of spot Bitcoin ETFs by the SEC in January, considered an important milestone for the future of digital assets and American financial markets. Lawmakers argue that approving the Ethereum ETF would be a “natural progression” and would reinforce the consistency of rules applied by the SEC. “With the commission’s actions earlier this year, it seems a natural progression that would not only demonstrate consistency in the commission’s application of its standards, but also affirm the legal reasoning that facilitated spot Bitcoin ETPs,” they state in the letter.

It is worth remembering that Gary Gensler, chairman of the SEC, recently raised concerns about the FIT21 Law, highlighting possible regulatory gaps and risks for investors and markets. While the Biden administration opposes the bill’s approval, the White House did not plan to veto it, showing a divergence in the US government over the regulation of cryptocurrencies in the United States. On May 22, the Chamber voted 279 to 136 to approve FIT21.

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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.