Four members of the United States Congress have sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler, urging him to approve the listing of spot Bitcoin exchange-traded funds (ETFs) immediately. The lawmakers argue that the SEC is discriminating against spot Bitcoin ETFs, citing the legal precedent set by Grayscale Investments winning a review of its own ETF offering. They claim that there is no reason to deny spot crypto ETF applications following the Grayscale court decision, which deemed the SEC’s reasoning “arbitrary and capricious.”
The lawmakers emphasize that the approval of a regulated spot Bitcoin ETF would enhance investor protection by providing safer and more transparent access to Bitcoin. They believe it is the duty of Congress to ensure that the SEC approves investment products that meet the requirements set out by Congress. They conclude their letter by urging Gensler to approve the listing of spot Bitcoin ETFs immediately.
The timing of this request coincides with Gensler’s upcoming appearance before the House Financial Services Committee. All four lawmakers are members of the committee and may address the matter during the hearing. It is important to note that the looming threat of a government shutdown would not affect the hearing, as lawmakers have yet to reach an agreement on spending as of now.
Currently, the SEC has not approved the listing of any spot Bitcoin ETFs. Many had anticipated that the commission would reconsider pending ETF applications following its loss to Grayscale in court. However, the SEC has since delayed decisions on ETFs from major firms such as BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity.
The push for spot Bitcoin ETFs reflects the growing interest in cryptocurrency investments and the desire to provide regulated investment options for individuals and institutions. By approving spot Bitcoin ETFs, the SEC could potentially open up more opportunities for investors to participate in the cryptocurrency market while ensuring transparency and compliance with regulatory standards.
It remains to be seen how the SEC will respond to the lawmakers’ request. However, this letter adds further pressure on the SEC to address the growing demand for spot Bitcoin ETFs and potentially reconsider its stance on cryptocurrency-related investment products. The outcome of this regulatory battle will have significant implications for the future of cryptocurrency investments in the United States.
