US Congressmen Demand SEC Chief Gary Gensler Approve Bitcoin ETFs

Key Takeaways:

Four US Congressmen have demanded that the SEC approve a Bitcoin ETF
The lawmakers have written a letter to SEC Chief Gary Gensler to that effect
The letter alleges discrimination against BTC ETF on the part of the SEC

YEREVAN (CoinChapter.com) — A group of US Congressional members have sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler urging the regulatory agency to promptly approve the listing of spot Bitcoin exchange-traded products (ETPs).

The letter, penned by Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel, hints at possible discrimination by the agency.

Drawing attention to Grayscale Investments’ recent legal victory, the Congressional members emphasized the court’s declaration that the SEC’s rejection was both “unreasonable and unpredictable.”

“The SEC is responsible for making certain, that products that comply with investor protection standards are made available to investors…Following the Court of Appeals’ decision, there is no reason to continue to deny such application under inconsistent and discriminatory standards,”
he Congressmen wrote.

A group of Democratic and Republican Congressmembers want the SEC to approve Bitcoin ETFs.

A Spot Bitcoin ETP is no different from Bitcoin Futures ETP

Grayscale’s recent legal battle with the SEC centered around the agency’s rejection of its plan to transform Grayscale Bitcoin Trust (GBTC) into a spot bitcoin Exchange-Traded Product (ETP).

However, the court found that those two were the same product. It ruled that the SEC’s crackdown “was arbitrary and capricious.”

In essence, the court saw no apparent rationale for the SEC’s rejection of Grayscale’s application. Now, these Congressional representatives are inquiring why there is a lingering reluctance to green-light applications for spot cryptocurrency ETFs.

“The court’s findings underscores the fundamental point. A Bitcoin (BTC) ETP is indistinguishable from a Bitcoin futures ETP. Thus, the SEC’s current posture is untenable moving forward,”
they argued.

SEC Chair Gary Gensler faces growing pressure from lawmakers because of his opposition to Bitcoin ETFs.

In their bipartisan communication, the lawmakers also emphasized the potential benefits of a regulated spot Bitcoin ETF. They assert that it would enhance investor protection by providing a more secure and transparent avenue for accessing Bitcoin investments.

“A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent. Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress. To that end, we urge you to approve the listing of spot-bitcoin ETPs immediately,”
they concluded in their letter.

The Securities and Exchange Commission (SEC) has repeatedly refused to approve spot Bitcoin ETF proposals from major financial firms. The list includes Fidelity, BlackRock, Bitwise, VanEck, Galaxy, Invesco, and WisdomTree.