Bitcoin ETFs in the Crosshairs of the United States Congress

American lawmakers are moving. Recently, a bipartisan coalition made up of Republican and Democratic lawmakers raised their voices and pressured Gary Gensler, the head of the Securities and Exchange Commission (SEC), to act in favor of listing a spot bitcoin ETF.

Representatives Mike Flood, Tom Emmer, Ritchie Torres and Wiley Nickel lead the appeal. According to the letter addressed to Gensler on Tuesday, the approval of a regulated spot bitcoin ETF could be beneficial for investors. By making access to bitcoin more transparent and secure, the risk associated with trading this type of asset would be minimized.

They firmly argue: “Congress has a responsibility to ensure that the SEC approves investment products that align with the guidelines we establish. In this context, we urge that the listing of spot bitcoin ETPs be done without delay.”

One situation that brought this topic to the surface involves Grayscale Investments. A month ago, after a failed attempt to list a spot bitcoin ETF that was denied by the SEC, the company scored a significant victory. Three judges from the U.S. Court of Appeals for the D.C. Circuit gave the go-ahead for the SEC to reconsider its initial position.

An interesting detail highlighted in the court’s decision concerns the SEC’s approach to spot bitcoin ETFs compared to similar funds based on futures contracts. The latter had already been approved, raising questions about a possible inconsistent stance by the regulator.

The lawmakers, in their statement, point to this apparent imbalance: “The spot bitcoin ETP is no different from a bitcoin futures ETP. Therefore, the SEC’s current position becomes unsustainable for the future.”

Despite the outcry, the SEC is yet to express its position on approving the spot bitcoin ETF, even as financial sector giants such as BlackRock and Fidelity have shown interest and submitted their fund applications.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.