SEC Chair Gary Gensler’s Take On BonK ETF, Here’s What He Says
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United States Securities and Exchange Commission (SEC) Chair Gary Gensler once again criticized the crypto industry on live television, but this time, he used noticeably softer language when discussing the potential for future crypto ETFs.
During an interview on CNBC’s “Mad Money,” host Jim Cramer asked Gensler about the chances of introducing ETFs for other cryptocurrencies. Cramer a list of coins that had traded millions of dollars this morning, including Polkadot, Cardano, Cosmos, Bonk, Osmosis, and Ronin.
Cramer emphasized the high trading volumes of these coins, saying, “I would think that Bonk is a natural, and Osmosis. These are millions of dollars these things are trading – shouldn’t we have some sort of product?”
SEC Chair Gary Gensler on @CNBC Squawk Box this morning. Note the pivot from “all tokens are securities” to “tokens lack proper disclosure”.
Cramer asked about other token ETFs, Gensler dodges as usual into crypto bankruptcies as an answer for why crypto bad, SEC good. pic.twitter.com/FmSZkwuTYW
When asked about the possibility of a BONK ETF, Gensler did not provide a direct answer. Instead, he said many crypto tokens haven’t provided the necessary information for investors to make informed decisions, implying these tokens are unregistered securities. He highlights the need for proper regulation to protect against fraud and manipulation in the crypto market.
Gensler further stated, “You might have seen the bankruptcies in this space, with the most prominent figures in this field either in jail, about to go to jail, or awaiting extradition.”
He also criticized crypto exchange platforms for engaging in practices that would not be allowed on traditional stock exchanges like the New York Stock Exchange.
Ethereum Spot ETF ApprovalsGensler also touched upon the recent Ethereum spot ETF approvals, stating that it would still take some time before their registration statements are approved and they can be listed on public exchanges.
What Now For Crypto?While Gensler’s response may seem discouraging for those hoping for a BONK ETF, it suggests that with proper regulation, a wider range of cryptocurrency ETFs could be possible in the future, starting with Ethereum.
However, Gensler made it clear that the crypto market needs significant improvements in transparency and oversight before it can be considered on par with traditional financial markets.