Ethereum ETFs Could Receive SEC Approval by End of September

Spot Ethereum ETF supporters gained momentum during a Senate hearing when SEC Chair Gary Gensler indicated that applications were making progress.

Speaking to a subcommittee of the Senate Appropriations Committee, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler suggested that full regulatory approval for spot Ether (ETH) ETFs could be granted by the end of September. At the budget hearing on June 13, Gensler mentioned that the final batch of filings, known as S-1s or registration of securities, has reached staff review. The commission already approved proposed rule changes to list spot ETH ETFs, also referred to as 19b-4, last month.

Although the agency’s top official confirmed that Ethereum ETFs will likely start trading soon, Gensler’s ambiguous stance on Ether’s asset status continued. The SEC chair declined to definitively state whether the largest decentralized finance native token is a commodity or a security.

“Yes,” answered Behnam when asked if Ether should be classified as a commodity.

Gensler’s counterpart at the Commodity Futures Trading Commission, Rostin Behnam, has adopted an opposing view. This highlights the ongoing debate among regulators regarding Ether’s classification.

While experts noted that issuers filed spot ETH ETF bids in a non-security manner, it remains unclear how U.S. regulators and policymakers will officially approach the asset.

However, the removal of all staking language from applications suggests that Ethereum’s proof-of-stake (PoS) consensus mechanism is likely under SEC scrutiny. The securities agency has launched multiple enforcement actions and sent Wells Notices to Ethereum-adjacent providers, further solidifying Gensler’s view on the matter. Still, considering recent political shifts, inquiries into Ether’s underlying technology may also be at a standstill.

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