Ethereum ETFs likely approved by end of summer

Spot Ethereum ETF supporters triumph in Senate hearing as SEC Chairman Gary Gensler says filings are moving forward.

Speaking to a subcommittee of the Senate Appropriations Committee, U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler hinted that full regulatory approval for spot Ether (ETH) ETFs could come by the end of September.

Gensler said at the June 13 budget hearing that the final batch of applications, known as S-1s, or securities registrations, had reached staff review. The commission already approved proposed rule changes last month for listing spot ETH ETFs, also called 19b-4.

Gensler’s vague stance on Ether’s asset status continued, although the agency’s top official confirmed that Ethereum ETFs will likely begin trading soon. The SEC chairman categorically refused to say whether the largest decentralized finance native token is a commodity or a security.

Rostin Behnam, Gensler’s counterpart on the Commodity Futures Trading Commission, took an opposing view. Behnam answered “Yes” when asked if Ether should be classified as a commodity.

While experts have noted that issuers are offering spot ETH ETFs in a non-securitized manner, it remains unclear how U.S. regulators and policymakers will formally approach the asset.

However, the removal of all staking language from the apps indicates that Ethereum’s proof-of-stake (PoS) consensus mechanism is likely under SEC scrutiny.

The securities agency took multiple enforcement actions and sent Wells Notices to Ethereum-adjacent providers such as Consensys and Uniswap, further solidifying Gensler’s view on the matter. However, given the political changes in recent months, research into Ether’s underlying technology may also have been inconclusive.