U.S. Congress Appeals to SEC for Immediate Approval of Spot Bitcoin ETFs
Summary:
Four U.S. Congress members - Mike Flood, Wiley Nickel, Tom Emmer and Ritchie Torres - have appealed to SEC Chair Gary Gensler to approve the listing of spot Bitcoin exchange-traded funds (ETFs). The lawmakers argue there's no grounds to continue denying spot crypto ETF applications, especially following the victory of Grayscale Investments in court. They insist on the benefits of a regulated spot bitcoin ETP for investor protection and transparency. Despite previous expectations for a reconsideration of pending ETF applications, the SEC has yet to approve any spot BTC ETF listings.
Calling for immediate validation of spot Bitcoin (BTC) exchange-traded funds, or ETFs, four U.S. Congress members have appealed to Gary Gensler, the chair of the Securities and Exchange Commission (SEC). According to a letter dated September 26, Representatives Mike Flood, Wiley Nickel, Tom Emmer and Ritchie Torres assert that the SEC is displaying bias against spot bitcoin exchange traded products. They draw attention to the legal instance set by Grayscale Investments achieving a review for its own ETF offering. The Congress members informed Gensler there existed no justification to further reject spot crypto ETF applications after the Grayscale judicial verdict labelled the SEC's justification as baseless and unpredictable for approving investment schemes linked with Bitcoin futures. As per the letter, "A regulated spot bitcoin ETP would enhance protection levels for investors by rendering access to bitcoin more secure and transparent”. It further states that “Congress is liable to ensure that the SEC approves investment products fulfilling the criteria laid out by Congress." They urgenty requested Gensler to accept the spot-bitcoin ETPs listing.
A glimpse into the future suggests that Gensler's forthcoming appearance before the House Financial Services Committee on SEC oversight. All these representatives are committee members and may raise this issue in the September 27 hearing. This proceeding is expected to take place despite the potential government shutdown if lawmakers fail to reach a consensus on spending.
As of now, the SEC hasn't approved any spot BTC ETF listings. Post the SEC's legal defeat to Grayscale in August, many anticipated a reassessment of the pending ETF applications. However, the SEC later postponed decisions on ETFs from seven prominent entities including BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck and Fidelity.
Published At
9/26/2023 8:25:26 PM
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