- A group of prominent US Congressmen has strongly addressed the Securities and Exchange Commission ( SEC) via a letter, calling for the immediate approval of spot Bitcoin Exchange-Traded Funds (ETFs).
- The House lawmakers urged the SEC to approve the outstanding applications “immediately.”
- To date, the SEC has not approved the listing of any spot BTC ETF, as many had expected the commission to reconsider pending ETF applications following the SEC’s loss to Grayscale in court in August.
Four House Financial Services Committee members have urged the Securities and Exchange Commission Chair Gary Gensler to “immediately” approve the listing of spot Bitcoin exchange-traded funds or ETFs.
The bipartisan letter, signed by representatives Tom Emmer (R-Minn.), Mike Flood (R-Neb.), Ritchie Torres (D-N.Y.), and Wiley Nickel (D-N.C.), emphasizes the urgency of expanding access to Bitcoin investment options and highlights the potential benefits for American investors.
In a September 26 letter to Gensler, the four lawmakers noted;
“We write to ensure the Securities and Exchange Commission (SEC) does not continue to discriminate against spot bitcoin exchange-traded products (ETPs). The SEC is responsible for ensuring that products that comply with investor protections are available to investors.”
The lawmakers assert that spot Bitcoin ETFs would offer a regulated and secure way for investors to gain exposure to the world’s largest cryptocurrency. Such ETFs allow investors to buy and sell Bitcoin on traditional stock exchanges, simplifying the investment process and attracting more participants.
The letter further stated,
“We urge you to approve the listing of spot-bitcoin ETPs immediately.”
The request came ahead of Gensler’s scheduled appearance before the House Financial Services Committee on oversight of the SEC. The House Financial Services Committee members are expected to question Gary Gensler during a September 27 hearing on SEC oversight.
The Congressmen argue on the absence of Spot Bitcoin ETF.
One of the key points made in the letter is the need for regulatory clarity. The Congressmen argue that the absence of a spot Bitcoin ETF has led to investors seeking exposure through unregulated and potentially riskier avenues. Approval of spot Bitcoin ETFs would provide a clear regulatory framework for these investments.
Further, the letter asserted,
“A regulated spot bitcoin ETP would increase investors’ protection by making access to bitcoin safer and more transparent. Congress has to ensure the SEC approves investment products that meet the requirements set out by Congress.”
To date, the SEC has not approved the listing of any spot BTC ETF. Many had expected the commission to reconsider pending ETF applications following the SEC’s loss to Grayscale in court in August. However, the regulator subsequently delayed decisions on ETFs from seven significant platforms, including Wisdom Tree, Invesco Galaxy, VanEck, Fidelity, and Bitwise, BlackRock.
A bitcoin ETF could allow investors a much easier way to put money into the cryptocurrency market because ETFs are designed to be simple to trade in and out of through brokerage accounts.