- Members of the House Financial Services Committee urge SEC Chair Gensler for swift action on Spot Bitcoin
- A recent court decision challenges the SEC’s stance on Grayscale’s application.
- Bipartisan lawmakers suggest no distinction between spot and futures crypto ETFs.
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In a significant turn, U.S. House lawmakers have called on the SEC to fast-track the approval of spot Bitcoin ETFs, suggesting the regulator’s current stance is inconsistent and discriminatory.
Committee Pressures SEC for Expedited Action
In a remarkable move, four prominent members from the House Financial Services Committee have penned a letter to SEC Chair Gary Gensler. The bipartisan appeal, endorsed by figures like Rep. Tom Emmer, emphasizes the pressing need for the SEC to greenlight ETF applications. The spotlight on this plea intensifies as Gensler is poised for a hearing later this week.
Background: The Grayscale Case
The crypto industry remains on tenterhooks awaiting regulatory action, particularly after the SEC’s recent legal setback over its refusal of Grayscale’s spot bitcoin ETF proposal. The D.C. Circuit Court of Appeals’ judge, Neomi Rao, labelled the SEC’s decision in the Grayscale saga as “arbitrary and capricious”, nudging the regulator to reconsider its approach towards such applications.
Spot Bitcoin ETFs vs. Crypto Futures ETFs
With Gensler’s imminent appearance before the House Financial Services Committee, members are primed to discuss the apparent inconsistencies in the SEC’s treatment of different ETFs. The heart of the debate lies in distinguishing a spot bitcoin ETF from a crypto futures ETF. The lawmakers argue that given the SEC’s approval for crypto futures ETFs, a similar sanction for spot bitcoin ETFs is not just due but essential. “The SEC’s current posture is untenable moving forward,” was the resounding sentiment of the letter.
Implications for Investors and the Market
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As the crypto ecosystem thrives, a Bitcoin ETF could be the bridge many investors need. ETFs, known for their trading ease via brokerage accounts, can revolutionize cryptocurrency investments. With stalwarts like BlackRock and Fidelity awaiting the SEC’s nod on their applications, the market is eager for a positive outcome. The unanimous backing from Emmer, Flood, and Torres, all members of the Congressional Blockchain Caucus, further amplifies the gravity of this matter.
SEC’s Response and What Lies Ahead
Notably, the SEC has yet to publicly address this intensifying call. While the regulator remains silent, big players in the industry are lined up, having pitched their ETF applications. The near future, especially the SEC oversight hearing, will be crucial in determining the trajectory of spot Bitcoin ETFs in the U.S.
The push from U.S. lawmakers underscores a transformative moment for the cryptocurrency realm. As the line blurs between different crypto ETFs, the call for clear, consistent, and swift regulatory action is louder than ever. The outcome of this debate will not only shape institutional crypto investments but also set a precedent for future regulatory decisions.
The SEC did not immediately respond to a request for comment from COINOTAG.