In
a
significant
regulatory
shift,
the
US
Securities
and
Exchange
Commission
(SEC)

partially
approved

the
long-awaited
Ethereum
ETF
filings
submitted
by
prominent
asset
managers
three
weeks
ago,
including
BlackRock
and
Grayscale. 

SEC
Chairman
Gary
Gensler
has
indicated
that
full
approval
for
these
Ethereum
ETFs

could
come
by
the
end
of
the
summer,
providing
much-needed
clarity
for
investors
eagerly
awaiting
this
decision.

Senate
Hearing
Reveals
Potential
Approval
Of
Ethereum
ETFs

During
a
Senate
Banking
Committee
hearing
on
Thursday,
Chair
Gensler,

responding
to
queries

from
Senator
Bill
Hagerty,
expressed
his
belief
that
spot
Ethereum
ETFs
will
likely
receive
approval
by
the
end
of
the
summer. 

 

This

timeline

aligns
with
the
end
of
the
summer
season
on
September
22,
potentially
paving
the
way
for
S-1
approval
of
the
Ethereum
ETFs
just
in
time
for
the
November
US
elections,
where
crypto
has
become
a
prominent
issue
in
the
race
for
the
White
House. 

The
hearing
also
touched
upon
the
regulatory
challenges
posed
by
the
rapidly
evolving
cryptocurrency
industry.
Senator
Richard
Durbin
inquired
about
the
Commodity
Futures
Trading
Commission’s
(CFTC)
ability
to
regulate

crypto
assets
effectively. 

Gensler
highlighted
the
need
for
“proper
resources
and
a
well-defined
disclosure”
regime
at
the
CFTC.
Senator
Hagerty
stressed
the
importance
of
regulatory
clarity,
urging
the
SEC
to
foster
an
ecosystem
that
prevents
the
offshore
migration
of
the
crypto
industry. 

Gensler
countered
by
differentiating
between
unlawful
activities,
personal
preferences,
and
the
need
for

regulatory
clarity,
suggesting
a
distinction
between
disliking
the
law
and
the
lack
of
clarity.

Interestingly,
Gensler
referenced
the
SEC’s
approval
of
futures
Ethereum
ETFs
last
year
but
refrained
from
providing
a
definitive
answer
when
asked
whether
he
considered
Ethereum
a
commodity. 

 

This
ambiguity
highlights
the
ongoing
debate
surrounding
the
classification
of
cryptocurrencies
and
the
jurisdictional
dispute
between
the
SEC
and
the
CFTC.

CFTC
And
SEC
Clash
Over
Crypto
Classification

It
is
worth
noting
that
the
CFTC
had
previously
reaffirmed
its
stance,
classifying
Ethereum
and
several
other
cryptocurrencies
as
commodities,
further
fueling
the
battle
for

regulatory
oversight

within
the
digital
asset
industry. 

This
contrasts
the
SEC’s
position,
spearheaded
by
Chair
Gensler,
which
currently
designates
only
Bitcoin
as
a
commodity,
leaving
other
cryptocurrencies,
including
Ethereum,
outside
this
classification.

The
ongoing
struggle
over
cryptocurrency
classification
has
a
history,
exemplified
by
the
CFTC’s

lawsuit

against
Binance
last
year,
where
Ethereum
and
Litecoin
were
also
deemed
commodities. 

Ultimately,
this
latest
development
underscores
the
need
for
resolution
and
regulatory
clarity
within
the
cryptocurrency
ecosystem
to
ensure
a
robust
and
well-functioning
industry.

 

At
the
time
of
writing,
ETH
was
trading
at
$3,450,
down
4%
in
the
24-hour
time
frame,
led
by
Bitcoin,
which
also
fell
to
the
$66,900
level,
down
over
3%
in
the
same
time
frame. 

Featured
image
from
DALL-E,
chart
from
TradingView.com 

Go to Source
Author: Ronaldo Marquez

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