A Bipartisan Group of Lawmakers Urges SEC Chair to Approve Spot Bitcoin ETF
A group of lawmakers from both the Republican and Democratic parties have called on Securities and Exchange Commission (SEC) Chair Gary Gensler to allow the listing of a spot bitcoin exchange-traded fund (ETF). The lawmakers, including Reps. Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel, believe that a regulated spot bitcoin ETF would enhance investor protection by providing greater transparency and safety in accessing bitcoin. They argue that Congress has a responsibility to ensure that the SEC approves investment products that meet the requirements set by Congress. They are urging Gensler to approve the listing of spot bitcoin ETFs immediately.
Court Ruling Highlights Differential Treatment
Last month, Grayscale Investments won a court ruling stating that the SEC must re-review its bid for a spot bitcoin ETF. The court specifically addressed the SEC’s differential treatment of spot bitcoin ETFs compared to similar funds based on futures contracts, which the regulator has already approved. The lawmakers argue that this ruling emphasizes the point that there is no distinction between a spot bitcoin ETF and a bitcoin futures ETF. Therefore, they believe that the SEC’s current stance is untenable moving forward.
Gensler will respond to members of Congress directly rather than through the media, according to an SEC spokesperson. Despite applications from major players like BlackRock and Fidelity, the SEC has not yet approved a spot bitcoin ETF.
Concerns Over Chinese Crypto Companies
In a separate development, Rep. Blaine Luetkemeyer has written a letter expressing concerns about registered broker-dealers with ties to the Chinese Communist Party (CCP) operating in the US. Luetkemeyer argues that the guidance provided by both the SEC and Financial Industry Regulatory Authority (FINRA) is too narrow and fails to address concerns regarding non-China based US firms with CCP connections. He cites broker-dealers such as Prometheum Inc, Webull Financial, LLC, and Moomoo as examples. Luetkemeyer has posed questions to Gensler about data security concerns related to CCP ties. Gensler and Cook have until October 26 to respond.
Luetkemeyer is a member of the House Financial Services Committee, which will hear from Gensler on Wednesday.
Hot Take: Urgent Approval Needed for Spot Bitcoin ETF
A bipartisan group of lawmakers is urging SEC Chair Gary Gensler to promptly approve the listing of a spot bitcoin exchange-traded fund (ETF). They argue that such an ETF would enhance investor protection by increasing transparency and safety in accessing bitcoin. The lawmakers emphasize that Congress has a responsibility to ensure that the SEC approves investment products that meet the requirements set by Congress. They also highlight a recent court ruling that found no distinction between spot bitcoin ETFs and bitcoin futures ETFs, indicating that the SEC’s current stance is unsustainable. This development adds pressure on the SEC to take action and approve a spot bitcoin ETF.
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