Congressmen from the United States are urging Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), to swiftly approve the listing of spot Bitcoin exchange-traded funds (ETFs). Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres claim that the SEC’s continued resistance to approve these ETFs amounts to discrimination against spot Bitcoin exchange-traded products in a letter dated September 26.
The legislators contend that a review of spot crypto ETFs is necessary in light of the recent legal precedent set by Grayscale Investments, which successfully obtained a review of its own ETF offering. This article explores the specifics of their argument and how they affect the cryptocurrency market.
A Call for Regulatory Equality
In their letter to SEC Chair Gensler, the four Congress members emphasize the alleged discrimination against spot Bitcoin exchange-traded products. They draw attention to the Grayscale court decision, which deemed the SEC’s rationale for its actions as “arbitrary and capricious.” Grayscale’s successful legal challenge ultimately led to a review of its ETF proposal, marking a significant shift in the regulatory landscape.
The lawmakers contend that the SEC should now apply this precedent to the broader cryptocurrency market, asserting that there is no valid reason to continue denying spot crypto ETF applications. They argue that a regulated spot Bitcoin ETF would enhance investor protection by creating a safer and more transparent pathway to Bitcoin ownership.
Related: SEC Extends Deadline for Spot Bitcoin ETF Decisions
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According to the letter, Congress holds a responsibility to ensure that the SEC approves investment products that align with the established requirements set out by Congress itself. The lawmakers assert that the regulatory body’s reluctance to approve spot Bitcoin ETFs runs counter to this duty.
Immediate Approval Urged
In a strong call to action, the Congress members urge SEC Chair Gensler to immediately approve the listing of spot Bitcoin ETFs. They emphasize that such ETFs would offer increased safeguards for investors and enhance the accessibility and transparency of Bitcoin. By requesting swift approval, the lawmakers seek to expedite the integration of spot Bitcoin ETFs into the broader investment landscape.
The timing of this request is noteworthy, as Gensler was scheduled to appear before the House Financial Services Committee for an oversight hearing regarding the SEC. All four Congress members who signed the letter are members of this committee, indicating their intent to address this matter during the hearing scheduled for September 27.
While the plea for spot Bitcoin ETF approval is gaining traction, the cryptocurrency market is closely watching for regulatory developments. The SEC’s previous postponement of decisions on ETF proposals from prominent firms highlights the importance of this issue and the potential impact it could have on the crypto investment landscape.
The letter from Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres to SEC Chair Gary Gensler signals growing congressional support for spot Bitcoin exchange-traded funds. The lawmakers contend that the recent Grayscale court decision should serve as a precedent for the broader cryptocurrency market, emphasizing the need for regulatory equality. By urging immediate approval of spot Bitcoin ETFs, they aim to bolster investor protection and foster greater transparency in the cryptocurrency sector. As the SEC continues to deliberate on this issue, the crypto community awaits further developments that could shape the future of Bitcoin investment products in the United States.
Related: Congressman Tom Emmer says SEC chair Gary Gensler is a ‘bad faith regulator’