US Congress Members Disapprove of SEC’s Stance on Spot Bitcoin ETFs!

• Members of the House Financial Services Committee, who are also Representatives, have stated that the SEC chairman should approve spot Bitcoin ETFs “immediately.”
• In their letter, they claimed that the SEC has consistently discriminated against spot Bitcoin ETFs following a court ruling that found the Commission violated the Administrative Procedures Act when it rejected Grayscale’s Bitcoin Trust conversion to an ETF application.
• The Representatives argued that applications for regulated spot Bitcoin ETPs should no longer be rejected based on inconsistent and discriminatory standards.

Lawmakers, members of the House Financial Services Committee, requested the approval of Bitcoin ETFs in a letter addressed to the SEC.

US Congress Members Call on the SEC

Four members of the US Congress have expressed their concerns about the SEC Chairman’s hesitance to approve spot Bitcoin exchange-traded fund (ETF) listings in the country.

These Congress members are also members of the House Financial Services Committee. They particularly emphasized the need for the SEC Chairman to approve spot Bitcoin ETFs “immediately,” especially following a court ruling that characterized the reasons for rejecting Grayscale’s application as “arbitrary and capricious.”

In a letter dated September 26th and addressed to SEC Chairman Gary Gensler, Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel argued that the SEC has consistently discriminated against spot Bitcoin ETFs following a court ruling that found the Commission violated the Administrative Procedures Act when it rejected Grayscale’s Bitcoin Trust conversion to an ETF application. The letter stated:

“The court concluded that different regulatory treatment of similar products without a rational explanation is illegal. The court’s finding underscores the fundamental point. A spot Bitcoin ETP is indistinguishable from a Bitcoin futures ETP. Therefore, the SEC’s current stance is unsustainable going forward.”

The Representatives also expressed their trust in the Commission’s statements urging market participants to “come in and register” and noted that many have complied with this call. They argued that applications for regulated spot Bitcoin ETPs should no longer be rejected based on inconsistent and discriminatory standards.

Protecting Investors

According to the Representatives, a regulated spot Bitcoin ETP enhances investor protection by allowing investors to access Bitcoin in a more secure and transparent manner.

This open letter comes ahead of Gensler’s appearance before the House Financial Services Committee on September 27th to discuss SEC oversight, and it may serve as an indicator of whether the concerns of the four Representatives will be addressed during that meeting.