SEC Chief Gary Gensler Weighs In On Granting Approval To XRP, Solana, BONK ETFs After Ethereum

United States Securities and Exchange Commission (SEC) chairman Gary Gensler has commented on whether his agency will give the nod to other crypto exchange-traded funds (ETFs), after recently making the decision to approve a slew of ETFs that give investors access to Ethereum (ETH).

SEC’s 11^th Hour About-Face On Ether ETFs

In a June 5 appearance on CNBC’s Squawk on the Street, SEC’s Gary Gensler suggested that the approval of Ether-based spot ETFs is the logical next step for his Commission after previously greenlighting spot BTC products.

Before granting the key 19b-4 forms on May 23, crypto pundits were convinced that Gensler was hell-bent on blocking the spot ETH ETF applications because of a lack of meaningful discussions with would-be issuers. However, the regulator made abrupt progress at the last minute. 

According to Gensler, Ether checked all the boxes for a spot exchange-traded fund after having its futures traded on the Chicago Mercantile Exchange for years. “Ethereum had been traded on the Chicago Mercantile Exchange futures for three-plus years. And the staff looked at that closely, and that was approved,” Gensler told CNBC.

While Gensler hinted that the SEC might delay the spot Ether ETF approval process, the agency has already gotten the ball rolling for ultimately listing the new products on U.S. exchanges. However, when this final approval might happen remains unclear. “Now, the underlying exchange-traded products (ETPs) still need to go through a process to have the disclosure about that. That will take some time, but they’re working on that right now.”

The SEC boss added in the interview that the spot Ethereum ETF 19b-4 approvals came just four months after the SEC gave the regulatory blessing to 11 spot Bitcoin ETFs, marking an industry first. Bloomberg ETF analysts forecast a July 4 launch date for spot ETH offerings.

Meme Coin BONK Next Top ETF Candidate?

Some top financial analysts think that by authorizing spot Ether ETFs, the SEC has opened the floodgates to other altcoin-based spot ETFs, including Solana (SOL) and Ripple’s XRP.

During the Wednesday CNBC interview, host Jim Cramer asked Gensler about the possible approval of other ETFs tied to crypto tokens such as Osmosis (OSMO) and Bonk (BONK) — a question the SEC head delicately shrugged.

“Let me say something more broadly about crypto markets: right now, without pre-judging anyone, these tokens, whether the ones Jim listed or other tokens, have not given you the disclosures that not only do you need to make your investment decisions, but also are required by the law,” posited Gensler.

Gensler further indicated that the SEC’s role is to guarantee investors have legally required disclosures and that exchanges are adequately regulated to deter fraud, market manipulation, and trading against their customers.