Gary Gensler: Ethereum ETF Listing Will Take Time, Severe Lack of Disclosure in Crypto Industry

SEC Chairman Gary Gensler, in an interview with CNBC, casually brushed over the reasons for Ethereum's approval and sharply criticized the lack of transparency in the cryptocurrency industry.

Gary Gensler: Lack of Disclosure in Cryptocurrency Exchanges

Gary Gensler remains highly critical of cryptocurrency exchanges, pointing out that even if exchanges disclose the risks of their products to retail investors, the SEC may still continue to take enforcement actions against them.

He stated:

Cryptocurrency exchanges that provide disclosure information may still face regulatory actions if they are involved in "market manipulation." If these exchanges publish "misleading" information that leads traders to invest in products they would not otherwise invest in, they will not be immune from prosecution. Having disclosure information does not necessarily protect these wrongdoers.

Gensler also emphasized that most cryptocurrency companies still do not disclose information, and the way exchanges operate has long been something that traditional financial market trading platforms would never be allowed to do.

Ethereum ETF Listing Takes Time

In fact, Gary Gensler briefly touched on the ETF issue, or instead criticized the prevalence of crypto scams.

Regarding the approval of an Ethereum ETF, he stated:

Ethereum futures have been trading on the CME for over three years, and SEC staff have carefully studied this and approved 19b-4, while the S-1 form still needs some time and is currently being worked on.

Bloomberg ETF analysts estimate that an Ethereum spot ETF could launch in early July.

SEC Requests Ethereum ETF Issuers to Submit S-1 Amendment by Friday

Criticism of Competitor Coin ETFs

Jim Cramer also mentioned that many competitor coins have daily trading volumes in the millions of dollars, and should the U.S. have some kind of traditional financial product to capture this trading volume?

Gary Gensler criticized this by saying:

Without predicting any possibilities, these tokens, whether those mentioned by Jim Cramer or other tokens, do not provide the information needed for investment decisions, and these exchanges are doing things that we would never allow the New York Stock Exchange to do.

In addition, Gensler also hinted that the successive imprisonment of crypto executives including Do Kwon, SBF, and others repeatedly shows the severe lack of information disclosure in the crypto industry.