In a recent exchange with Jim Cramer, host of CNBC’s Mad Money, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), delved into the topic of exchange-traded funds (ETFs) for cryptocurrencies. The conversation, held on Wednesday, touched upon the recent approval of ETFs for Bitcoin and Ethereum, and explored the potential for ETFs for lesser-known cryptocurrencies like SushiSwap (SUSHI) and Bonk (BONK).
Cramer, known for his insightful inquiries, raised questions about various coins experiencing significant capital movements that morning, such as Cardano, Cosmos, Immutable, Ronin, and MyNeighborAlice. He inquired about the likelihood of ETFs for these assets, pondering if a SushiSwap ETF could be on the horizon in just two weeks. Cramer also suggested that Bonk and Osmose, which had seen millions in trades, should have representation in the ETF market.
While Gensler refrained from giving a definitive answer, he emphasized the importance of disclosures for investment decisions when it comes to many crypto tokens. He pointed out that some tokens may be classified as unregistered securities, posing challenges for ETF approvals.
The SEC president also expressed concerns about the practices of certain cryptocurrency exchanges, noting unfavorable comparisons to operations not permitted on traditional stock exchanges like the New York Stock Exchange. Gensler highlighted recent bankruptcies in the crypto space and legal issues faced by market leaders, including arrests and extradition proceedings.
Discussing the approval process for Ethereum spot ETFs, Gensler mentioned that it would require some time before registration statements are greenlit for public exchange listings. On the other hand, a representative from BlackRock, a major asset management firm, indicated little interest in launching altcoin-focused ETFs, with Bitcoin remaining the primary focus for their clientele.
Disclaimer: The opinions expressed in this article are for informational purposes only and should not be considered as financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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