SEC Chair Gary Gensler has provided an update on the status of spot Ethereum ETFs, stating that they will take some time to launch despite the approval of associated 19-4b filings last month.
During an interview on CNBC, Gensler explained that the ETF applications are going through standard procedures, which could cause delays in the launch timeline. He also took the opportunity to criticize crypto exchanges for their questionable practices, highlighting the prevalence of fraud and manipulation in the market.
One of Gensler’s main concerns is the lack of proper disclosure and regulation in the broader crypto market, noting that many cryptocurrencies fail to meet the necessary disclosure requirements expected of a regulated asset class. This lack of transparency poses risks for investors who may not have access to the information needed to make informed decisions.
The SEC chair also pointed out the potential risks posed by crypto exchanges, specifically calling out activities that would not be permitted under US laws, such as trading against customers. Gensler emphasized the need to protect investors from fraud and manipulation, citing recent high-profile cases as examples of illicit activity that regulators are focused on addressing.
In addition to discussing crypto markets, Gensler touched on the transformative power of artificial intelligence (AI) in financial markets. While acknowledging the benefits of AI, he also warned of the risks of conflicts, fraud, and systemic issues if the technology is not properly managed.
Overall, Gensler’s comments underscore the SEC’s commitment to maintaining market integrity and protecting investors from fraudulent practices in the evolving landscape of cryptocurrencies and financial markets.
