The expert accused Gary Gensler of having close ties with the Ethereum project and China

  • The crypto expert stated that most of Ethereum is controlled by the Chinese authorities.
  • In his opinion, SEC head Gary Gensler is also involved in this.
  • He believes that the regulator will approve spot Ethereum-ETFs under pressure from the CCP.

US Securities and Exchange Commission (SEC) Chairman Gary Gensler has close ties to both the Ethereum project and the Chinese Communist Party (CCP). This opinion was expressed by venture investor, lawyer and crypto expert Stephen Nerayoff.

“Amid speculation surrounding Ethereum spot ETFs, it is becoming increasingly clear that the SEC, led by Gensler, is more involved in this project than it appears. His implicit approval for Prometheum to designate Ethereum as a security effectively greenlights spot exchange-traded funds based on the asset.”

The situation with Prometheum

The company received an SEC license in May 2023. Later, the head of the company, Aaron Kaplan, spoke before the US Congress in support of the regulator’s current course.

At the same time, he is suspected of having close ties with the Chinese companies Shanghai Wanxiang Blockchain Inc. and HashKey. Both, according to American politicians, are supported by the Chinese government.

In July 2023, Congressman Ritchie Torres asked the Senate to investigate the deal. Republicans followed suit in August. The SEC left both requests unanswered.

Prometheum became the first licensed digital asset broker-dealer in the United States. At the same time, the Commission did not explain in any way its choice in favor of this particular organization.

Opinion of Nerayoff and crypto experts

Previously, the expert provided Bitcoinist with alleged evidence of support by key figures in the Ethereum project for the course of centralizing the network. It is noteworthy that his conclusions echo the opinions of TruthLabs analysts.

Those indicated that the CCP allegedly controls a 66.6% share of the entire Ethereum supply. The organization’s experts are also confident that Prometheum is actually controlled by the Chinese authorities.

Nerayoff believes Gary Gensler “cannot afford” to reject applications for spot Ethereum ETFs, hinting at some “consequences” for the Commission chairman.

We previously reported that Franklin Templeton had filed to become an exchange-traded fund in this category.

Experts disagree on the likelihood of spot Ethereum ETFs being approved in 2024. Standard Chartered Bank said this would likely happen in May 2024.

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Barack
As an experienced journalist, expert in useful tips, I have a passion for providing valuable information and practical guides to a wide audience. My articles are characterized by thorough research and verification of reliable sources that ensure the quality and accuracy of every information I provide
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