The political winds in Washington D.C. shifted dramatically this week, breathing life into the prospect of spot ether ETFs gaining approval, but that doesn't appear to have swayed Securities and Exchange Commission Chair Gary Gensler's position on crypto.

Gensler affirmed his contention that most cryptocurrencies are securities while speaking at the Investment Company Institute conference on Thursday. His comments come as many expect approval for spot ether ETFs will be handed down later in the day.

"There's 15,000 or 20,000 tokens in this field. They do not operate as currency," said Gensler. "Without prejudging any one of them [they] generally have a group of entrepreneurs, and the public is looking at white papers, looking at websites, looking at sort of those group of entrepreneurs and investing based upon that group of entrepreneurs. And so it sort of fits into the classic Supreme Court test of what is a security."

"Not every crypto token is a security ... but I believe, again without prejudging, most are," added Gensler when asked about the SEC's ability to regulate crypto.

Earlier this week, Gensler denounced the Financial Innovation and Technology for the 21st Century Act, also known as FIT21. He argued the act undermines the classification of crypto assets as investment contracts, therefore, removing them from the SEC’s oversight.

On Wednesday, the House voted 279 to 136 to pass FIT21. The White House had said it opposed the act but fell short of saying it would veto it.

Gensler doubling down on his belief that most cryptocurrencies are securities comes as the market expects spot ether ETFs will be approved on Thursday, which would be considered a major win for crypto advocates.

Since the beginning of the week, there have been rumblings that both Republican and Democrat lawmakers, along with President Joe Biden's administration, are cognizant of how important the issue of crypto could be to American voters ahead of upcoming elections.

It appears that knowledge is leading to the prospect of both new policy and the approval of the spot ether ETFs, which were for weeks were expected to fall short of approval.