Saturday, July 20, 2024

Four members of the United States Congress have implored the United States Securities and Exchange Commission (SEC) to expedite the approval of spot bitcoin exchange-traded funds (ETFs). “In light of the appellate court’s ruling, there exists no rationale for further rejection of such applications based on inconsistent and prejudicial criteria. We strongly encourage immediate approval of spot bitcoin ETP listings,” they communicated to SEC Chair Gary Gensler.

Congress Members Advocate for Immediate Approval of Spot Bitcoin ETFs

U.S. Representatives Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY) formally addressed a letter to SEC Chairman Gary Gensler this past Tuesday, pressing the regulatory body to swiftly grant approval for spot bitcoin ETF applications. Their correspondence stated:

We correspond to ascertain that the Securities and Exchange Commission (SEC) discontinues any prejudicial treatment against spot bitcoin exchange-traded products (ETPs).

Their missive cited a recent judgment from the Court of Appeals concerning Grayscale Investments’ effort to transition its Bitcoin Trust (GBTC) to a spot bitcoin ETF. The appellate court determined that Grayscale’s envisaged bitcoin financial instrument is “materially akin, in terms of relevant regulatory considerations, to the already-sanctioned bitcoin futures ETPs.” The SEC, thus far, has given the nod to several bitcoin futures ETFs, yet has refrained from endorsing any spot bitcoin ETFs.

“The judicial pronouncement accentuates a fundamental premise: A spot bitcoin ETP is virtually indistinct from a bitcoin futures ETP. As a result, the SEC’s existing stance is no longer defensible,” the letter elaborated.

Highlighting Chairman Gensler’s frequent entreaties for cryptocurrency trading and lending platforms to “enter and formalize their status,” the legislators emphasized to Gensler: “The market stakeholders have acted based on your public remarks and have submitted applications for a regulated spot bitcoin ETP.” The congressional members underscored:

In the wake of the Court of Appeals’ ruling, no plausible cause remains for further denial of these applications, given their evaluation under unequal and biased standards. We ardently request immediate approval for the listing of spot bitcoin ETPs.

“A regulated spot bitcoin ETP would confer greater investor safeguards by enhancing bitcoin’s accessibility in a more secure and transparent manner. It is the obligation of Congress to ensure that the SEC sanctions investment products that comply with legislative stipulations,” the letter concluded.

Speculation is rife that the securities oversight agency is poised to authorize spot bitcoin ETFs in the early part of next year. Skybridge Capital founder Anthony Scaramucci projected last week that every Wall Street establishment will soon offer bitcoin ETFs to their clientele, underscoring that the forthcoming decade or two are “exceptionally favorable” for BTC. Earlier in the month, analysts at JPMorgan opined that the SEC will probably approve a series of spot bitcoin ETFs simultaneously. Jay Clayton, a former SEC Chairman, anticipates that the endorsement of spot bitcoin ETFs is a foregone conclusion.

What are your thoughts on the likelihood of the SEC approving spot bitcoin ETFs in the near future? Please share your views in the comments section below.

Frequently Asked Questions (FAQs) about Spot Bitcoin ETFs Approval

What is the main demand from the four U.S. Congress members to the SEC?

The four U.S. Congress members are urging the Securities and Exchange Commission (SEC) to immediately approve applications for spot Bitcoin exchange-traded funds (ETFs).

Who are the U.S. Representatives that have sent this letter to the SEC?

The U.S. Representatives who sent the letter to SEC Chairman Gary Gensler are Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY).

What recent court decision is cited in the lawmakers’ letter?

The lawmakers cite a recent judgment from the Court of Appeals concerning Grayscale Investments’ effort to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF. According to the court, Grayscale’s proposed investment product is “materially similar” to already approved bitcoin futures ETPs.

Why do the Congress members find the SEC’s current stance “no longer defensible”?

The legislators argue that the Court of Appeals’ decision makes it clear that spot Bitcoin ETFs are materially similar to already approved Bitcoin futures ETFs. Therefore, they find the SEC’s current posture of not approving spot Bitcoin ETFs inconsistent and discriminatory.

What do lawmakers expect would be the benefit of a regulated spot Bitcoin ETP?

The lawmakers believe that a regulated spot Bitcoin ETP would offer greater protections for investors by making access to Bitcoin safer and more transparent.

What is the general sentiment about the future of spot Bitcoin ETFs?

Many industry experts and analysts expect that the SEC is likely to approve spot Bitcoin ETFs in the early part of next year. There is a prevailing optimism that such approval is inevitable in the near future.

Are there any Wall Street predictions mentioned regarding spot Bitcoin ETFs?

Yes, Skybridge Capital founder Anthony Scaramucci predicted that every Wall Street firm will offer Bitcoin ETFs to their clients in the future, emphasizing a bullish outlook for Bitcoin over the next 10-20 years.

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7 comments

InvestorJoe September 28, 2023 - 6:03 pm

Congress has a “duty”? Since when did they care lol. But hey, if it helps to get these ETPs approved, then I’m all for it.

Reply
EmilyW September 29, 2023 - 1:25 am

I agree with the lawmakers here. A regulated spot Bitcoin ETP is a win-win for everyone. Why’s the SEC still holding back??

Reply
TechGuru September 29, 2023 - 2:00 am

Interesting how Grayscale’s court win could be a game changer here. If spot and future Bitcoin ETFs are “materially similar”, whats stopping the approval?

Reply
JakeSullivan September 29, 2023 - 2:14 am

Wow, finally some action from the lawmakers. Bout time they put pressure on the SEC. This could be huge for crypto market ya know.

Reply
MarketWatch September 29, 2023 - 4:42 am

Just read Anthony Scaramucci’s take. If he’s right, then we’re in for a “remarkably bullish” phase for BTC. Fingers crossed.

Reply
Sarah_92 September 29, 2023 - 8:27 am

i’m not that optimistic. Even if Congress pushes, SEC might still drag its feet. They are pretty slow on these things…

Reply
CryptoFan101 September 29, 2023 - 10:38 am

Legislation is always playing catch up with tech. Hope they approve it soon. Good for investors, good for market.

Reply

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