The Securities and Exchange Commission (SEC) of the United States has been urged by four American senators to swiftly approve spot bitcoin exchange-traded funds (ETFs). "In light of the Court of Appeals' ruling, there is no justification for continuing to reject such applications under unfair and inconsistent standards... The congressmen wrote to Gary Gensler, the chairman of the SEC, asking him to promptly authorize the listing of spot bitcoin ETPs.
Lawmakers want the approval of spot Bitcoin ETFs.
In a letter to SEC Chairman Gary Gensler, U.S. Representatives Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY) pleaded with the watchdog to swiftly approve applications for spot bitcoin exchange-traded funds (ETFs). The legislators noted:
We are writing to guarantee that spot bitcoin exchange traded products (ETPs) are not still subject to discrimination by the Securities and Exchange Commission (SEC).
In the letter, Grayscale Investments' request to convert its bitcoin trust (GBTC) into a spot bitcoin ETF is cited along with a recent Court of Appeals ruling in that case. The court determined that Grayscale's suggested bitcoin investment product is "materially similar, across relevant regulatory factors, to the approved bitcoin futures ETPs." The SEC has so far approved a number of bitcoin futures ETFs but none for spot bitcoin.
"The court's decision emphasizes the crucial point. A bitcoin futures ETP and a spot bitcoin ETP are identical. Therefore, going forward, the SEC's current position is untenable," the letter continues.
"The court's decision emphasizes the crucial point. A bitcoin futures ETP and a spot bitcoin ETP are identical. Therefore, going forward, the SEC's current position is untenable," the letter continues.
The congressmen reminded the SEC chair that Gensler has repeatedly urged cryptocurrency trading and lending platforms to "come in and register," saying that "market participants have relied on your statements and have filed applications for a regulated spot bitcoin ETP." Congressmen emphasized:
"A regulated spot bitcoin ETP would boost investor protection by securing and enhancing access to bitcoin. The letter reads, "Congress has a responsibility to guarantee that the SEC certifies investment products that comply with the standards established by Congress.
The approval of spot bitcoin ETFs by the securities authorities is anticipated to occur early in 2019. Last week, Anthony Scaramucci, the founder of Skybridge Capital, projected that every Wall Street firm would provide bitcoin ETFs to their clients, stating that the next 10–20 years would be "remarkably bullish" for BTC. JPMorgan's analysts predicted earlier this month that the SEC would probably approve several spot bitcoin ETFs at once. Jay Clayton, the former chair of the SEC, thinks that the approval of spot bitcoin ETFs is inevitable.
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