In a recent testimony before the Senate Appropriations Committee, Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), indicated that the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) is expected sometime during this summer.

During the committee session, Senator Bill Hagerty queried Gensler on the timeline for approving spot ETH ETFs. Gensler responded optimistically, stating, “I would envision sometime over the course of this summer.”

While expressing confidence in the progress of the approval process, Gensler acknowledged that individual issuers are still navigating the registration process. He emphasized the importance of ensuring that each applicant’s registration statements meet the SEC’s stringent disclosure requirements before being approved.

Despite the positive outlook, Gensler refrained from committing to a specific approval date, highlighting the need for thorough compliance with regulatory standards. He critiqued the cryptocurrency sector for what he described as widespread non-compliance with SEC disclosure requirements, underscoring his regulatory stance on digital assets.

The anticipation for spot ETH ETFs follows the recent authorization of 19b-4 forms for potential ETF applicants on May 23. These forms represent a crucial step toward final approval, pending the completion of S-1 registration forms.

ETF specialist Nate Geraci expressed interest in observing developments in the next batch of amended S-1 forms, suggesting that the remaining tasks for applicants may not be extensive.

Gensler, known for his rigorous regulatory approach towards digital assets, reiterated concerns about the crypto industry’s operational practices during his testimony. He criticized exchanges for engaging in financial activities that potentially prioritize their interests over those of their customers, citing examples such as FTX.

Despite these challenges, Gensler affirmed the SEC’s commitment to scrutinizing blockchain-based financial products, indicating that the regulatory process for crypto-related exchange-traded products continues unabated.