- SEC Chair Gary Gensler took a less hostile approach to crypto in a new interview following Ethereum ETF approvals, and was asked about potential crypto ETFs like BONK.
- Gensler implied that tokens like Solana and meme coin BONK might be considered acceptable investments given adequate disclosures, a softer stance than his previous dismissal of the crypto market.
- The approval of spot Ethereum ETFs by the SEC is seen as potentially opening the floodgates to other altcoin spot ETFs, such as Solana and XRP.
Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), criticized the crypto industry in a recent TV appearance but used noticeably softer language compared to past remarks.
Gensler Implies Some Tokens Could Be Acceptable With Proper Disclosures
Gensler said that certain cryptocurrencies “have not given you the proper disclosures you not only need to make your investment decisions but also that are required by the law.” While still critical, this implies tokens like Solana and meme coin BONK might be deemed acceptable investments if they provide adequate disclosures. This is a shift from his previous dismissal of the entire crypto market.
Ethereum ETF Approvals May Explain Gensler’s Change in Tone
Gensler’s softened rhetoric comes just weeks after the SEC approved Ethereum exchange-traded funds (ETFs) on Wall Street, after initially appearing unlikely to do so. Many believe this move resulted from mounting political pressure, with the crypto lobby spending millions ahead of the 2024 election. The Ethereum ETF approvals may have paved the way for other altcoin spot ETFs.
Gensler Criticizes Crypto Exchanges From NYSE Floor
In addition to crypto tokens, Gensler also criticized crypto exchanges while speaking from the floor of the New York Stock Exchange. He accused major crypto exchanges of practices that would not be allowed for traditional exchanges like front-running trades.
Prospects for Future Crypto ETFs Remain Unclear
When asked about the likelihood of a BONK ETF by TV host Jim Cramer, Gensler delicately sidestepped the question. The prospects for further crypto ETF approvals beyond Ethereum remain uncertain for now.
