In a letter to the Securities and Exchange Commission’s (SEC) boss, Gary Gensler, four US lawmakers urged him to approve spot Bitcoin exchange-traded funds (ETFs) immediately. As contained in the letter on Tuesday, the Congressmen alleged that there were no justifiable reasons hindering the SEC from sanctioning its first spot Bitcoin ETF right away.
“We write to ensure that the Securities and Exchange Commission (SEC) does not continue to discriminate against spot bitcoin exchange-traded funds,” the lawmakers wrote. “A spot bitcoin ETP is indistinguishable from a bitcoin futures ETP. Thus, the SEC’s current posture is untenable moving forward,” they added.
Grayscale’s Victory is the Last Puzzle: Congressmen
The four lawmakers who are House Financial Services Commission members are Mike Flood, Tom Emmer, Ritchie Torres, and Wilet Nickel. The joint letter by the Congressmen stated that Grayscale’s court victory against the SEC was the last piece of the puzzle that would have prompted the US regulator to approve a spot bitcoin ETF application.
According to the lawmakers, the court ruled that there were no distinctions between the bitcoin futures ETF, which it has approved a couple of times, and the spot bitcoin ETF, which it refuses to give a nod to. Thus, hesitating to endorse a chunk of spot Bitcoin applications on its desk is indefensible and unlawful.
DCG’s subsidiary Grayscale won a case against the SEC, where it argued why the regulator denied its request to convert its futures Bitcoin Trust to a spot Bitcoin ETF. The US District Court for the District of Columbia ruled that the agency’s reasoning in the case was “arbitrary and capricious.”
Spot Bitcoin ETF a Win
“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. To that end, we urge you to approve the listing of spot bitcoin EPTs immediately,” the Congressmen stated.
The lawmakers acknowledged the ease a spot Bitcoin ETF would provide for retail and institutional investors to invest in Bitcoin and requested that Gensler quickly approve pending applications. The likes of BlackRock, Fidelity, and Wisdom Tree are awaiting the SEC’s approval on their spot Bitcoin ETF filing.
