SEC Chairman Gary Gensler revealed at a budget hearing that the final approval for an Ethereum spot ETF is expected to be completed this summer. Additionally, he once again complained about the widespread lack of compliance in the crypto industry and avoided answering whether Ethereum is a commodity.
Despite the upcoming official launch of the Ethereum spot ETF, the positions of the two major regulatory agencies in the United States continue to leave the attributes of the world’s second-largest crypto asset in a gray area.
When asked whether Ethereum is a commodity, Gensler did not give a clear answer, maintaining the SEC’s uncertain position on the asset; while CFTC Chairman Rostin Behnam clearly stated that Ethereum is a commodity.
Although Gensler has repeatedly stated that most digital assets should be considered securities, he refused to point out which assets fall into which category, except for those listed in enforcement actions.
Senator Hagerty urged the SEC to focus more on the clarity of the crypto industry during the hearing, believing that there is still uncertainty in many aspects of the SEC’s approach. In response, Gary Gensler stated, “Breaking the law and not liking the law are different from lacking clarity.”
Gensler also pointed out that while not all crypto assets are securities, some fall within the jurisdiction of the CFTC, but crypto assets that are securities have an obligation to disclose information to the public, and he reiterated that most tokens are still unregistered and violate securities laws.
Regarding CFTC’s efforts to ban election contracts on prediction markets such as PredictIt, Polymarket, Zeitgeist, and Kalshi, Rostin Behnam explained that they are trying to ensure that election contracts are prohibited, as it goes against current laws.
CFTC Chairman Behnam also mentioned that CFTC is attempting to ban efforts to commercialize elections, as he believes it is a clear violation of current laws, and they are taking steps to ensure that these election contracts are prohibited.