4 members of the US Congress are requesting Securities and Alternate Fee (SEC) chair Gary Gensler “instantly” approve the itemizing of spot Bitcoin (BTC) exchange-traded funds, or ETFs.
In a Sept. 26 letter to Gensler, U.S. Representatives Mike Flood, Wiley Nickel, Tom Emmer and Ritchie Torres claimed the SEC was “discriminat[ing] towards spot bitcoin alternate traded merchandise”, citing the authorized precedent set by Grayscale Investments in successful a evaluation of its personal ETF providing. The 4 lawmakers instructed Gensler there was “no cause to proceed to disclaim” spot crypto ETF functions following the Grayscale courtroom choice, which dominated the SEC’s reasoning was “arbitrary and capricious” in having already accepted funding autos tied to Bitcoin futures.
“A regulated spot bitcoin ETP would supply elevated safety for buyers by making entry to bitcoin safer and extra clear,” stated the letter. “Congress has an obligation to make sure the SEC approves funding merchandise that meet the necessities set out by Congress.”
The lawmakers added:
“[W]e urge you to approve the itemizing of spot-bitcoin ETPs instantly.”
Bipartisan letter from @USRepMikeFlood @RepWileyNickel @GOPMajorityWhip and @RitchieTorres to SEC Chair Gensler on not approving a bitcoin spot ETF: “there is no such thing as a cause to proceed to disclaim such functions below inconsistent and discriminatory requirements.” https://t.co/6x5XaUsUqT
— Ron Hammond (@RonwHammond) September 26, 2023
Associated: Grayscale wins the courtroom battle, however what does this imply for a spot Bitcoin ETF?
The request got here forward of Gensler’s scheduled look earlier than the Home Monetary Companies Committee on oversight of the SEC. All 4 lawmakers are members of the committee and will handle the matter within the Sept. 27 listening to. The continuing will doubtless not be affected by the looming menace of a authorities shutdown with lawmakers unable to achieve an settlement on spending as of the time of publication.
So far, the SEC has not accepted the itemizing of any spot BTC ETF. Many had anticipated the fee to rethink pending ETF functions following the SEC’s loss to Grayscale in courtroom in August. Nevertheless, the regulator subsequently delayed selections on ETFs from 7 main corporations — BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck and Constancy.
