US Legislators Urge SEC to Approve Spot Bitcoin ETPs

US Legislators Urge SEC to Approve Spot Bitcoin ETPs

A contingent of United States legislators penned a missive addressed to Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), on Tuesday. In their communication, they fervently implored the regulatory body to promptly grant approval for the listing of exchange-traded products (ETPs) linked to spot bitcoin.

The letter signed by Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel, the lawmakers articulated their viewpoint, contending that a meticulously regulated exchange-traded fund (ETF) linked to spot bitcoin would serve to "enhance investor safeguards" by furnishing a more secure and transparent avenue for bitcoin investment.

According to the letter, Congress bears the responsibility of ensuring that the SEC greenlights investment products that align with the stipulations delineated by Congress.

In a development from the previous month, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the SEC's contention that bitcoin markets possess an exceptional resilience against manipulation and are not sufficiently mature for ETF endorsement. The court determined that this assertion did not provide valid grounds for the SEC's rejection of Grayscale's proposed bitcoin ETF.

Referencing this legal precedent, the Congressional representatives asserted that there is no justification for persistently declining such requests based on inconsistent and discriminatory criteria. They contended that the SEC's current position is unsustainable going forward.

The SEC has consistently rejected proposals for spot bitcoin ETFs, despite submissions from prominent financial institutions such as Fidelity, BlackRock, Bitwise, VanEck, Galaxy, Invesco, and WisdomTree. Thus far, the regulatory body has exclusively granted approval for bitcoin futures ETFs, a decision that has attracted censure due to the perceived disparity in standards.

The legislators conveyed to Chair Gensler their viewpoint that a spot bitcoin ETP bears no discernible differences from a bitcoin futures ETP. Consequently, they emphasized the impracticality of the SEC's current stance for the future. They urged the SEC to promptly grant approval for a spot Bitcoin fund.

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