This week, US lawmakers increased pressure on the SEC chairman to approve a spot Bitcoin ETF.
Earlier this week, the US House of Representatives Financial Services Committee increased pressure on regulators. In a letter, lawmakers asked Securities and Exchange Commission (SEC) Chairman Gary Gensler to approve a Bitcoin spot ETF.
For this group of four legislators, there are no compelling reasons to deny approval of exchange-traded funds to several companies. In the letter they express that there are no major differences between futures and spot funds, which should be sufficient reason for approval.
Last year, the regulatory agency approved several Bitcoin futures funds. However, it maintains a strong negative on cash funds and assures that it does so to protect investors. For lawmakers, the SEC’s arguments are meaningless.
Bitcoin Spot ETF Should Be Approved Without Delays
The aforementioned letter maintains that the agency’s position to delay approval is unsustainable. They base the latter on the recent decision of an appeals court in the Grayscale case, which was forceful against the SEC, according to which, Judge Neomi Rao backed Grayscale’s stance by stating that its proposed Bitcoin ETF was “materially similar” to Bitcoin futures products that have already obtained SEC approval to operate on the markets.
Baded on the above, the refusal to approve a spot Bitcoin ETF does not have legal support.
“There is no reason to continue denying such requests under inconsistent and discriminatory standards,” says the letter from the representatives of both parties.
More than a dozen applications for these instruments have been on the shelves of the SEC for a few years. The legislators’ letter to the agency was defiantly responded to with a new postponement of Ark Invest’s application.
Following the court’s decision, the agency appears to have no intention of obeying the mandate. Grayscale itself complained and asked those led by Gary Gensler to rush its approval. In this way, they explain that this slowness negatively affects investors at an ideal time in the cryptocurrency market to invest.
Some analysts consider that it is a matter of time before the agency proceeds to approve a Bitcoin spot ETF. However, the agency remains firm in its position.
A Cash Fund Would Allow Greater Security for Investors
Contrary to the SEC’s arguments, the legislators’ letter considers that a larger cryptocurrency ETP provides security to the market. In that sense, people could invest in Bitcoin without the need to go to unregulated market actors, but through stock funds from licensed companies.
“A regulated spot Bitcoin ETP would provide greater protection to investors by making access to bitcoin more secure and transparent. Congress has a duty to ensure that the SEC approves investment products that meet requirements set by Congress “, specifies the letter.
This new struggle becomes further proof of the need for clear rules for the crypto sector in the United States. Since 2017, with the ICO fever, the SEC has had a smear campaign against the virtual currency market. However, it was 2023 that the attacks began with greater force. In June, the agency attacked two of the largest exchanges, Binance and Coinbase.
The position of refusing to approve a spot Bitcoin ETF is another of the actions destined to hurt the sector. Regulators also have open cases against companies of all types and even against media outlets that promote NFTs.
By Audy Castaneda