Gary Gensler Refutes Ethereum as a Commodity Rejects Regulatory Opacity Violation is Not the Same as Disliking the Law
SEC Chairman Gary Gensler revealed at a budget hearing that the final approval of the Ethereum spot ETF is expected to be completed this summer. Additionally, he once again complained about the widespread non-compliance in the crypto industry and avoided answering whether Ethereum is a commodity.
Despite the imminent launch of the Ethereum spot ETF, the positions of the two major regulatory agencies in the United States still leave the attributes of the world’s second largest crypto asset in a gray area.
When asked whether Ethereum is a commodity, Gensler did not give a clear answer, maintaining the SEC’s uncertain position on the asset, while CFTC Chairman Rostin Behnam explicitly stated that Ethereum is a commodity.
Although Gensler has repeatedly stated that most digital assets should be considered securities, he has refused to specify which assets fall into which category, except for those listed in enforcement actions.
Senator Hagerty urged the SEC to focus more on the clarity of the crypto industry at the hearing, believing that there is still uncertainty in many aspects. In response, Gensler stated, “Breaking the law and not liking the law are different from lack of clarity.”
Gensler also pointed out that while not all crypto assets are securities, some fall within the jurisdiction of the CFTC, but crypto assets that are securities have an obligation to disclose information to the public, reiterating that most tokens remain unregistered and in violation of securities laws.
Gensler expressed, “The crypto industry turns a blind eye to regulations, and CFTC is not adequately prepared to manage a disclosure-based regulatory system because its responsibilities differ from those of the SEC.”
CFTC Chairman Rostin Behnam explained that if directed by Congress, CFTC should have more responsibility for regulating crypto trading, and currently lacks some necessary regulatory authority. He mentioned the efforts made by CFTC to ban election contracts on prediction markets such as PredictIt, Polymarket, Zeitgeist, and Kalshi.
The last thing we need now is to commercialize elections. In my opinion, this clearly violates current laws, and we are taking steps to ensure that these election contracts can be banned.
