Ethereum Spot ETF Clears First SEC Hurdle, Says Former Chair Clayton
CryptoNewsTerminal Staff24 May, 2024
Ethereum Spot ETF Clears First SEC Hurdle, Says Former Chair Clayton
Former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton has shared insights into the approval process for a spot Ethereum (ETH) exchange-traded fund (ETF). In an interview on CNBC's Squawk Box, Clayton explained that the SEC's ETF approval process involves two steps. The first step is for the exchange where the ETF would trade to submit a proposed rule change under Form 19b-4. The second step is for the ETF issuer to file a registration statement on Form S-1 or N-1A. Clayton emphasized that the key issue in a spot ETF for Ethereum is whether it is considered a security. However, he believes that the passage of the 21st Century Financial Innovation and Technology Act (FIT21) has provided greater clarity on this matter and may have influenced the SEC staff's decision to move forward with approving a 19b-4 for an ETH spot ETF.
