SEC Chair Gary Gensler Refrains from Pronouncing Ethereum as a Security

Crypto News– The Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, declined to provide a definitive stance on whether Ethereum should be classified as a security, particularly as the SEC assesses numerous applications for spot Ethereum ETFs.

SEC Chair Gary Gensler Refrains from Pronouncing Ethereum as a Security

During an interview on Bloomberg TV, Gensler chose to withhold comment when pressed about Ethereum’s status, stating, “I would defer on that question.” He emphasized that the classification of any cryptocurrency depends on the specific circumstances and facts regarding whether investors anticipate profits based on the efforts of others. Regarding the pending applications, Gensler refrained from providing further insight, noting, “We do have filings in front of us. I’m not going to comment.”

The SEC’s stance on Ethereum has garnered attention, especially in light of the various applications for a U.S. spot Ethereum ETF. Recently, the SEC postponed its decision on approving the iShares Ethereum Trust from BlackRock, following similar delays for applications from Fidelity, Invesco, and Galaxy Digital.

Bloomberg’s ETF analyst, James Seyffart, speculated that the SEC might continue postponing decisions on Ethereum ETF applications until May 23, which marks the final deadline for applications from VanEck and Ark Invest, led by Cathie Wood.

This pattern mirrors the SEC’s approach to spot Bitcoin ETF approvals, which it has been slow to greenlight. In January, the regulator reluctantly approved several spot Bitcoin ETFs, citing changing circumstances after a court instructed the SEC to reassess Grayscale’s application to convert its GBTC product into an ETF.