Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), expressed his concerns about the cryptocurrency market , describing cryptocurrency as an extremely speculative and highly volatile asset class, which the current security tokens may violate the federal securities laws, and investors lack protection in the market. Therefore, he stated that he would cooperate with other regulatory agencies and Congress to provide protection to investors.
WisdomTree, a US-based financial services company, filed for an Ethereum ETF “WisdomTree Ethereum Trust” with the US Securities and Exchange Commission (SEC). It is the second company after VanEck to submit an S-1 form to the SEC to apply for an ETH ETF, and it would be listed in Chicago Board Options Exchange( CBOE).
Gary Gensler has repeatedly sought to protect investors by implementing protective measures against cryptocurrency fraud or market manipulation. It is believed that the decisions are prepared for the approval of the listing of cryptocurrency ETFs. The cryptocurrency market has developed rapidly since last year, except retail investors, many companies have entered the market, as well as attracting the attentions of institutions.
ETF is a way for institutions and traditional investors to participate into crypto space in a regulated way, so a comprehensive protection mechanism may be more beneficial to the development of cryptocurrency ETFs, and will be easier to gain the confidence of institutions and thus accelerate the process to bring cryptocurrencies to the public. The US government’s regulations are inevitable, but when compared with the Hong Kong government’s regulations, it is more optimistic.