SEC Chair Gary Gensler mentioned that spot Ethereum ETFs will face delays in launching despite the approval of associated 19-4b filings last month.

Gensler explained that the ETF applications are undergoing standard procedures, which will take some time, though he did not specify a precise timeline during his June 5 interview on CNBC.

During the interview, Gensler also criticized cryptocurrency exchanges for questionable practices, emphasizing ongoing issues with fraud and market manipulation. He reiterated the SEC's commitment to maintaining market integrity.

Despite recent regulatory progress, Gensler expressed concerns about inadequate disclosure and regulation within the broader crypto market. He noted that many cryptocurrencies fail to meet the necessary disclosure requirements expected in regulated asset classes.

Gensler further highlighted differences between crypto exchanges and traditional stock exchanges like the NYSE, criticizing practices such as trading against customers, which he stated would not be permitted under US laws.

Regarding artificial intelligence (AI), Gensler acknowledged its transformative potential in capital markets but cautioned about associated risks such as conflicts of interest and fraud if not properly managed.

The interview covered various market themes, including the role of public versus private markets and the importance of fair competition, with Gensler underscoring the transparency and accessibility benefits of public markets.