A group of congressmen have joined forces in a letter to ask SEC Chairman Gary Gensler to put aside discrimination against cryptocurrencies and approve a Bitcoin spot ETF in the United States.
The letter, signed by Congressmen Tom Emmer, Mike Flood, Wiley Nickel and Ritchie Torres, calls for the cooperation of the SEC and its current chairman to ensure that American investors can access Bitcoin in a regulated and appropriate manner, which is currently the most capitalized cryptocurrency in the world, with more than $511.000 billion in the market.
The lawmakers asked Gensler to drop discrimination toward exchange-traded Bitcoin investment products that track the cryptocurrency’s spot market price. They are calling on the SEC to approve a Bitcoin spot ETF as a means to allow investors to safely gain exposure to Bitcoin and the crypto market and to comply with existing investor protection standards.
“We are writing to ensure that the Securities and Exchange Commission (SEC) does not continue to discriminate against spot bitcoin exchange-traded products (ETPs).
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Grayscale is key to the future of a Bitcoin spot ETF in the United States
In the letter, the congressmen made reference to the decision of the United States Court of Appeals for the District of Columbia, which granted Grayscale Investments’ request last month for review of its proposal to convert the Grayscale Bitcoin Trust or GBTC into a Bitcoin spot ETF. “The Circuit Court upheld Grayscale’s position that the SEC violated the Administrative Procedures Act when it denied Grayscale’s application to convert the Grayscale Bitcoin Trust (GBTC) into a Bitcoin spot ETF,” the congressmen noted.
As reported by this outlet, Judge Neomi Rao said that the product submitted by Grayscale to the SEC is materially similar to the bitcoin futures ETFs previously approved by the securities regulator. However, the SEC had rejected the application submitted by Grayscale in an unreasonable and inconsistent manner.
Judge Rao therefore stated that the SEC had acted arbitrarily and capriciously and ruled that the securities regulator will again review Grayscale's application to convert GBTC into a Bitcoin spot ETF, overturning its previous rejection decision.
The SEC's position is unsustainable in the future
Following the decision of the Court of Appeals, the US congressmen point out that the SEC's hostile position towards a Bitcoin spot ETF is “unsustainable in the future”.
The court's ruling states that the SEC's different regulatory treatment of Bitcoin futures ETFs and Bitcoin spot ETF applications is unlawful, as both products are considered similar.
“The Court’s conclusion underscores the fundamental point: A bitcoin spot ETF is indistinguishable from a bitcoin futures ETF,” the congressmen pointed out.
Elsewhere in the letter, the congressmen called on the SEC to properly regulate the crypto market, taking into account its previous statements that cryptocurrency companies must register with the agency and the efforts that such companies are making to formally apply and register with the SEC. “There is no reason to continue denying such applications under inconsistent and discriminatory standards.”
The lawmakers also noted that the approval of a Bitcoin spot ETF will provide greater protection for investors by creating a safe and regulated entry route to the largest cryptocurrency on the market, whose demand and adoption continues to grow day by day.
Based on all of the above, the congressmen asked the SEC and Gensler to immediately approve the list of Bitcoin spot ETFs awaiting the regulator's response.
SEC postpones decision on Ark Invest ETF
However, simultaneously with the congressmen's letter, the SEC announced the delay of the decision on the ETF application made by Ark Invest. According to the presentation from the SEC, the decision on this Bitcoin spot ETF application has been postponed until January 10th of next year.
Other major asset managers, including BlackRock, Fidelity and most recently Franklin Templeton, are awaiting SEC approval to launch a Bitcoin spot ETF on US soil.
Of all the contenders, BlackRock has a 99% SEC approval record, a fact that keeps the crypto community quite optimistic about the future of Bitcoin spot ETFs in the US market.
Continue reading: Franklin Templeton joins asset managers seeking a Bitcoin spot ETF in the US
