US Congress Urges Immediate Approval of Spot Bitcoin ETF
A group of four members of the United States Congress has sent a letter to the Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, demanding the swift approval of spot Bitcoin exchange-traded funds (ETFs). The lawmakers argue that the SEC’s rejection of Grayscale’s spot Bitcoin ETF proposal without providing a satisfactory explanation would constitute unlawful discrimination. They emphasize that it is Congress’s responsibility to ensure that the SEC meets all investment product requirements set by Congress. The lawmakers also express support for spot Bitcoin ETFs, stating that they would provide increased protection for investors and greater clarity on Bitcoin cryptocurrency.
US SEC Continues to Delay ETF Approval
The SEC has been consistently postponing its decision on Grayscale’s spot Bitcoin ETF application since August 2023, requesting more time for evaluation. Grayscale had applied to convert its Bitcoin trust into an ETF in October 2021, but the SEC denied the request, citing concerns about anti-fraud and investor protection standards. Grayscale appealed the decision in court and achieved a significant victory when a federal court ruled against the SEC, deeming its rejection “arbitrary and capricious.” This ruling has raised hopes within the crypto community and financial institutions that spot Bitcoin ETFs will eventually be approved. However, the SEC has yet to respond to Congress’s demands regarding this matter.
Hot Take: Spot Bitcoin ETF Approval Expected Soon
The recent demand from members of Congress for immediate approval of spot Bitcoin ETFs reflects growing pressure on the SEC to address this issue. With a court ruling against the SEC’s rejection of Grayscale’s proposal and mounting support from influential financial institutions, it seems likely that spot Bitcoin ETFs will eventually receive regulatory approval. If approved, these ETFs would offer investors enhanced protection and transparency when accessing Bitcoin. However, the SEC’s upcoming hearing with Congress on September 27 will provide more insight into the regulator’s stance on spot Bitcoin ETFs. All eyes are now on the SEC as the crypto community eagerly awaits its response.
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