Gary Gensler denies Ethereum is a commodity, refutes opaque regulation: Breaking the law is different from disliking the law.

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, revealed during a budget hearing that the final approval for an Ethereum spot exchange-traded fund (ETF) is expected to be completed this summer. Furthermore, he once again expressed concerns about the widespread lack of compliance in the cryptocurrency industry and avoided directly answering whether Ethereum is considered a commodity.

SEC Gary Gensler: Ethereum Spot ETF to be Approved This Summer

The Attributes of Ethereum Remain Controversial

Despite the imminent launch of an Ethereum spot ETF, the stance of the two major regulatory bodies in the United States continues to keep the attributes of the world's second-largest cryptocurrency in a gray area.

When asked whether Ethereum is considered a commodity, Gensler did not provide a clear answer, maintaining the SEC's uncertain position on the asset; while CFTC Chairman Rostin Behnam explicitly stated that Ethereum is a commodity.

Although Gensler has repeatedly stated that most digital assets should be treated as securities, he has refused to specify which assets fall into which category, other than those listed in enforcement actions.

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Gary Gensler: Violating the Law and Disliking It Are Different

According to FOX reporter Eleanor Terrett, Senator Hagerty urged the SEC to focus more on clarity in the cryptocurrency industry during a hearing, pointing out that there is still uncertainty in many aspects for the SEC.

To this, Gary Gensler responded:

Violating the law and disliking it are different from lacking clarity.

Implying CFTC's Insufficiency?

Gensler further pointed out that while not all cryptocurrencies are security tokens, some fall under the jurisdiction of the CFTC, but those deemed securities have an obligation to disclose information to the public, reiterating that most tokens remain unregistered and in violation of securities laws.

Gensler stated:

The cryptocurrency industry turns a blind eye to regulations, and CFTC is not adequately prepared to manage a disclosure-based regulatory regime because its responsibilities differ from those of the SEC.

CFTC Claims Limited Regulatory Authority

When questioned, CFTC Chairman Rostin Behnam explained that according to congressional directives, the CFTC should have more responsibility in regulating cryptocurrency trading, but currently lacks some necessary regulatory authority.

He stated:

We lack those traditional regulatory tools such as registration, custody, and monitoring, and CFTC needs a higher budget to achieve this goal.

Rostin Behnam also mentioned that CFTC is making efforts to ban election contracts on prediction markets like PredictIt, Polymarket, Zeitgeist, and Kalshi.

The last thing we need right now is to commodify elections, which in my view, clearly violates existing laws, and we are taking measures to ensure that these election contracts are prohibited.

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