4 members of the USA Congress are requesting Securities and Trade Fee 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] in opposition to spot bitcoin change traded merchandise,” citing the authorized precedent set by Grayscale Investments in successful a evaluate of its personal ETF providing. The 4 lawmakers advised Gensler there was “no purpose to proceed to disclaim” spot crypto ETF functions following the Grayscale court docket choice, which dominated the SEC’s reasoning was “arbitrary and capricious” in having already permitted funding autos tied to Bitcoin futures.
“A regulated spot bitcoin ETP would offer elevated safety for buyers by making entry to bitcoin safer and extra clear,” mentioned 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:
“We 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 isn’t any purpose to proceed to disclaim such functions underneath inconsistent and discriminatory requirements.” https://t.co/6x5XaUsUqT
— Ron Hammond (@RonwHammond) September 26, 2023
The request got here forward of Gensler’s scheduled look earlier than the Home Monetary Providers 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 possible not be affected by the looming menace of a authorities shutdown, with lawmakers unable to succeed in an settlement on spending as of the time of publication.
So far, the SEC has not permitted 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 court docket in August. Nevertheless, the regulator subsequently delayed selections on ETFs from seven main companies — BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck and Constancy.