In a recent interview with Jim Cramer on CNBC’s Mad Money, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), delved into the world of exchange-traded funds (ETFs) for cryptocurrencies. Gensler highlighted the recent approvals of Bitcoin and Ethereum ETFs and explored the potential for ETFs for lesser-known cryptocurrencies like SushiSwap (SUSHI) and Bonk (BONK).
During the conversation, Cramer posed thought-provoking questions about various coins that experienced significant movements that morning, including Cardano, Cosmos, Immutable, Ronin, and MyNeighborAlice. Cramer inquired about the feasibility of ETFs for these assets, suggesting the creation of an ETF for SushiSwap in two weeks and similar representative products for Bonk and Osmose.
Gensler, while exercising caution in his responses, emphasized that many crypto tokens lack the necessary disclosures for informed investment decisions, hinting at their classification as unregistered securities, which complicates the approval of related ETFs.
Expressing concerns about the practices of some cryptocurrency exchange platforms, Gensler compared them unfavorably to operations on the New York Stock Exchange. He also highlighted recent bankruptcies in the cryptocurrency space and legal troubles faced by market leaders, including arrests and extradition proceedings.
When discussing the approval of Ethereum spot ETFs, Gensler noted that registration statements still need time before being approved for listing on public exchanges. In contrast, a representative from BlackRock mentioned little interest in launching altcoin-focused ETFs, with Bitcoin remaining the primary focus for their client base.
Disclaimer: The views expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
In a related development, Galaxy Digital CEO projects an optimistic future for crypto regulation in the US, while Vitalik Buterin criticizes the trend of celebrity memecoins.
