Is ethereum a security? Gensler refuses to answer this question

In a recent interview with Bloomberg TV, Gary Gensler did not answer the question whether the SEC considers ethereum a security. The US Securities and Exchange Commission, chaired by Gensler, is considering applications to launch ETH ETFs, which have been postponed for the following months.

Does the SEC believe Ethereum is a security?

The growth of ETH in recent days has been very impressive. Vitalik Buterin's cryptocurrency could not rise above the level of USD 1,500 for a long time, and in recent days it has been breaking new records. As ETH levels are beaten (currently the ethereum price is USD 3,800), the question arises about ETH-based spot ETFs. Applications for such funds are already being submitted to the SEC, but the American regulator headed by Gary Gensler rejects the May deadline for their consideration.

In one of the latest interviews with Bloomberg TV, Gensler refrained from answering the question whether ethereum is a security. Gensler stated that:

We have applications before us and I will not comment on them.

The SEC's position on ethereum is crucial as the commission considers many applications to launch ETH-based ETFs in the US. This week, the SEC again delayed its decision to approve the iShares Ethereum Trust from investment giant BlackRock.

Queue of applications to the SEC for approval of ETH ETFs

The success of BTC ETFs is visible less than three months after their approval by the SEC. It is therefore not surprising that the largest players (such as BlackRock) want to follow suit and launch spot ETF funds based on the second most popular cryptocurrency on the market. The SEC has consistently delayed processing applications, having done so with applications from BlackRock as well as those from Fidelity, Invesco and Galaxy Digital.

Bloomberg ETF analyst James Seyffart says the SEC will continue to delay its decision on ETH ETF applications until May 23. This is the application deadline for VanEck and Cathie Wood's investment firm, Ark Invest. So it looks like Gary Gensler and the SEC will have to answer the question of whether ethereum is a security at the end of May.