A bipartisan group of lawmakers has called on the U.S. Securities and Exchange Commission (SEC) to cease its efforts to block the approval of Bitcoin exchange-traded funds (ETFs).
The lawmakers argue that the SEC should adhere to court decisions and approve applications for Bitcoin ETFs, asserting that they are "indistinguishable" from crypto futures ETFs, which the SEC has already granted approval.
Spot Bitcoin ETF vs. Crypto Futures ETFs: Lawmakers Highlight Parallels
Four members of the House Financial Services Committee wrote a letter addressed to the SEC's Chair, Gary Gensler. They expressed their belief that a spot Bitcoin ETF is functionally similar to the crypto futures ETFs that the SEC has previously given a greenlight.
They emphasized that this similarity should lead to the approval of applications submitted by prominent financial institutions such as Fidelity, BlackRock’s iShares, and Grayscale Investments, which shares a parent company with CoinDesk.
Rep. Mike Flood (R-Neb.), Rep. Tom Emmer (R-Minn.), Rep. Wiley Nickel (D-N.C.), and Rep. Ritchie Torres (D-N.Y.) jointly stated: "The SEC's current posture is untenable moving forward. Following the Court of Appeals' decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards."
Simplicity and Accessibility: The Appeal of Bitcoin ETFs for Investors
The call for action comes on the heels of a recent decision by a judge in the D.C. Circuit Court of Appeals, who instructed the SEC to reevaluate its stance on Bitcoin ETF applications. Circuit Judge Neomi Rao expressed that the SEC's rejection of the Grayscale case had been "arbitrary and capricious."
The House lawmakers have urged the SEC to promptly approve the pending applications, emphasizing the urgency of the matter. They will have an opportunity to question Gensler on this topic during an SEC oversight hearing scheduled for the following day.
A Bitcoin ETF, if approved, could provide investors with a more accessible avenue for entering the cryptocurrency market. ETFs are renowned for their simplicity, allowing investors to trade in and out of them through standard brokerage accounts.
The cryptocurrency community and financial markets alike will be closely watching the SEC's response to this bipartisan call for regulatory approval. It might have significant implications for the future of cryptocurrency investments. This development underscores the growing interest in bringing digital assets into mainstream financial markets.
