• Home
  • Police & Regulations
  • U.S. House Representatives Urgently Urge SEC's Gensler for Immediate Approval of Spot Bitcoin ETF

U.S. House Representatives Urgently Urge SEC's Gensler for Immediate Approval of Spot Bitcoin ETF

Police & Regulations
Sep 28, 2023 at 02:08 pm

A bipartisan group of House Financial Services Committee members, evenly split between parties, has sent a letter to SEC Chair Gary Gensler, urging action on ETF approvals. Among them is Rep. Tom Emmer, who holds a significant position as the majority whip in the House leadership. They are calling on the SEC to progress with approving ETF applications, and they will have the opportunity to discuss this matter with Gensler during an upcoming hearing.

The industry is eagerly awaiting the SEC's response following the regulator's recent court battle over the rejection of Grayscale's spot bitcoin ETF application.

In their letter to SEC Chair Gary Gensler, a bipartisan coalition of lawmakers advised the U.S. Securities and Exchange Commission (SEC) to heed the court's guidance and cease efforts to impede the regulatory approval of bitcoin exchange-traded funds (ETFs). They argue that a spot bitcoin ETF is fundamentally similar to the crypto futures ETFs already endorsed by the agency, and therefore, applications from entities like Fidelity, BlackRock's iShares, and Grayscale Investments (which shares a parent company with Bitsday, Digital Currency Group) should be granted SEC approval without further delay.

The letter, signed by Reps. Mike Flood (R-Neb.), Tom Emmer (R-Minn.), Wiley Nickel (D-N.C.), and Ritchie Torres (D-N.Y.), contends that the SEC's current stance is unsustainable. They emphasize that following the Court of Appeals' decision, there is no valid reason to persist in denying such applications based on inconsistent and discriminatory standards.

Last month, a judge in the D.C. Circuit Court of Appeals instructed the SEC to reassess its position on these applications. Circuit Judge Neomi Rao asserted that the SEC's rejection in the Grayscale case had been "arbitrary and capricious."

The House lawmakers are urging the SEC to promptly endorse the pending applications. Gensler is scheduled to appear in an SEC oversight hearing before the committee on Wednesday, providing an opportunity for members to address this issue directly.

A bitcoin ETF could offer investors a much more convenient avenue to invest in the cryptocurrency market, as ETFs are designed for easy trading through brokerage accounts.

Emmer, who serves as the majority whip in the House leadership, along with Flood and Torres, are members of the Congressional Blockchain Caucus in the House.

Read more: MicroStrategy's Billion-Dollar Bitcoin Play: A Strategic Masterstroke

Related News

Sign up for daily crypto news in your inbox

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.