In a recent televised chat with Jim Cramer, the well-known host of CNBC’s Mad Money, Gary Gensler, the chairperson of the U.S. Securities and Exchange Commission (SEC), delved into the topic of exchange-traded funds (ETFs) for cryptocurrencies. The conversation, which unfolded on Wednesday, covered the recent green lights given to ETFs for Bitcoin and Ethereum, and explored the potential for similar products for other digital assets like SushiSwap (SUSHI) and Bonk (BONK).
Cramer, known for his insightful questions, probed Gensler about various coins experiencing significant market movements that day, including Cardano, Cosmos, Immutable, Ronin, and MyNeighborAlice. He pondered the idea of ETFs for these assets, posing the question: “Could we see a SushiSwap ETF in the next two weeks?” Cramer also suggested that Bonk and Osmose, which saw substantial trading volumes, should have representation in the ETF realm.
During the exchange, Gensler opted for caution in his responses, highlighting the importance of disclosure in investment decisions for crypto tokens. He hinted that many tokens lack the necessary transparency for regulatory approval, potentially classifying them as unregistered securities, a hurdle for ETF green lights.
Gensler also expressed apprehensions about the practices of some crypto exchanges, drawing unfavorable comparisons to standards upheld by traditional stock exchanges like the New York Stock Exchange. He referenced recent industry bankruptcies and legal entanglements faced by market leaders, including arrests and extradition proceedings.
In terms of Ethereum spot ETF approvals, Gensler noted that the process will take time before registration statements are ready for public exchange listings. In contrast, a representative from BlackRock, a major asset management firm, indicated little interest in launching altcoin-focused ETFs, with the focus remaining on Bitcoin for their clients.
Disclaimer: The opinions shared in this article, whether from the author or any mentioned individuals, are for informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies involves risks of financial loss.
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