US lawmakers are mounting pressure on the Securities and Exchange Commission (SEC) to expedite the approval of Spot Bitcoin Exchange-Traded Fund (ETF). The legislators argue that there is no valid reason to deny these applications and emphasize the potential benefits of embracing this emerging asset class. In their message to SEC Chair Gary Gensler, the lawmakers asserted, “In light of the Court of Appeals’ ruling, there is no justification for persisting with inconsistent and biased criteria when evaluating these applications… We strongly encourage you to promptly authorize the inclusion of spot bitcoin ETPs.”
Legislators Advocate for Approval of Spot Bitcoin ETFs
On Tuesday, U.S. Representatives Mike Flood (R-NE), Tom Emmer (R-MN), Wiley Nickel (D-NC), and Ritchie Torres (D-NY) jointly addressed a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, pressing the regulatory leader to promptly grant approval for applications related to spot bitcoin exchange-traded funds (ETFs). Their letter indicated US lawmakers urge SEC to approve spot ETF stated:
“We write to ensure the Securities and Exchange Commission (SEC) does not continue to discriminate against spot bitcoin exchange-traded products (ETPs).”
The letter references a recent ruling by the Court of Appeals in the Grayscale Investments case, where they sought approval to transform their Bitcoin Trust (GBTC) into a spot Bitcoin ETF. According to the court’s judgment, Grayscale’s proposed bitcoin investment product is “substantially alike, considering key regulatory aspects, to the already approved bitcoin futures ETPs.” Up to this point, the SEC has given the green light to multiple bitcoin futures ETFs but hasn’t yet granted approval for any spot bitcoin ETF.
“The court’s decision reinforces the core argument. A spot bitcoin ETP is essentially identical to a bitcoin futures ETP. Consequently, the SEC’s current stance is unsustainable moving forward,” the letter further asserts.
Lawmakers Hold SEC Accountable for Regulatory Commitments
Citing SEC Chair Gensler’s consistent urging of crypto trading and lending platforms to “step forward and complete registration,” the legislators highlighted to the SEC chair, “Market participants have placed their trust in your statements and have submitted requests for a regulated spot bitcoin ETP.” The members of Congress emphasized:
Following the Court of Appeals’ decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards … We urge you to approve the listing of spot Bitcoin ETPs immediately.
The letter emphasizes that a regulated spot Bitcoin ETP would enhance investor protection, offering a safer and more transparent route to Bitcoin investments. The lawmakers assert that Congress holds the responsibility of ensuring the SEC’s approval of investment products aligned with congressional mandates.”
“As anticipation grows, many anticipate that the securities watchdog will grant approval for spot bitcoin ETFs in the early part of the coming year. Skybridge Capital’s founder, Anthony Scaramucci, recently forecasted that every major Wall Street firm will offer bitcoin ETFs to their clientele, underlining the “remarkably bullish” outlook for BTC in the next 10-20 years. Additionally, JPMorgan’s analysts earlier this month, expressed the likelihood of the SEC approving multiple spot bitcoin ETFs simultaneously. Former SEC Chair Jay Clayton also believes that the approval of spot bitcoin ETFs is an inevitable development
US lawmakers urge SEC to approve spot ETF, emphasizing the Court of Appeals’ recent ruling that found them similar to approved Bitcoin futures ETPs. They argue that such ETFs would enhance investor protection and align with congressional mandates. As expectations mount, many anticipate SEC approval early next year, with industry leaders like Anthony Scaramucci predicting widespread adoption among Wall Street firms. JPMorgan’s analysts also anticipate approval for multiple spot Bitcoin ETFs. In this dynamic landscape, former SEC Chair Jay Clayton underscores the inevitability of spot Bitcoin ETF approval, marking a significant step in the cryptocurrency market evolution.