Four U.S. lawmakers have called on the U.S. Securities and Exchange Commission (SEC) to immediately approve spot bitcoin exchange-traded funds (ETFs). “Following the Court of Appeals’ decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards … We urge you to approve the listing of spot bitcoin ETPs immediately,” the lawmakers told SEC Chair Gary Gensler.
Lawmakers Want Spot Bitcoin ETFs Approved
U.S. Representatives Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY) sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler on Tuesday urging the regulator to immediately approve applications for spot bitcoin exchange-traded funds (ETFs). The lawmakers wrote:
We write to ensure the Securities and Exchange Commission (SEC) does not continue to discriminate against spot bitcoin exchange traded products (ETPs).
The letter cites a recent decision by the Court of Appeals in the case of Grayscale Investments seeking to convert its bitcoin trust (GBTC) to a spot bitcoin ETF. According to the court, Grayscale’s proposed bitcoin investment product is “materially similar, across relevant regulatory factors, to the approved bitcoin futures ETPs.” So far, the SEC has approved several bitcoin futures ETFs but has yet to approve any spot bitcoin ETF.
“The court’s finding underscores the fundamental point. A spot bitcoin ETP is indistinguishable from a bitcoin futures ETP. Thus, the SEC’s current posture is untenable moving forward,” the letter adds.
Referencing Gensler’s repeated call for crypto trading and lending platforms to “come in and register,” the lawmakers pointed out to the SEC chair: “Market participants have relied on your statements and have filed applications for a regulated spot bitcoin ETP.” The congressmen stressed:
Following the Court of Appeals’ decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards … We urge you to approve the listing of spot bitcoin ETPs immediately.
“A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent. Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress,” the letter concludes.
Many people expect the securities watchdog to approve spot bitcoin ETFs early next year. Skybridge Capital founder Anthony Scaramucci predicted last week that every Wall Street firm will sell bitcoin ETFs to their clients, emphasizing that the next 10-20 years are “remarkably bullish” for BTC. Earlier this month, JPMorgan’s analysts said the SEC is likely to approve multiple spot bitcoin ETFs at once. Former SEC Chair Jay Clayton believes that the approval of spot bitcoin ETFs is inevitable.
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