A bipartisan group of representatives in the US has called on Securities and Exchange Commission (SEC) Chairman Gary Gensler to immediately approve the listing of spot Bitcoin exchange-traded funds (ETFs).
The call follows a major court decision affecting the cryptocurrency market and is seen as a move to increase investor protection by making access to Bitcoin more transparent and secure.
Representatives Mike Flood, Tom Emmer, Ritchie Torres and Wiley Nickel sent a letter to Gensler on Tuesday, arguing that a regulated spot Bitcoin ETF would increase investor protection. “Congress has the duty to ensure that the SEC approves investment products that meet the requirements established by Congress,” they said in the letter:
“To this end, we encourage you to immediately approve the listing of spot-bitcoin ETPs.”
The representatives' call follows a victory for Grayscale Investments last month when three judges on the U.S. Court of Appeals ruled that the SEC should reconsider its spot Bitcoin ETF proposal.
The court specifically addressed the SEC's disparate treatment of spot BTC ETFs and similar funds based on regulator-approved futures contracts. Representatives pointed out this inconsistency, saying, “A spot Bitcoin ETP is no different from a BTC futures ETP. Therefore, the SEC's current stance is untenable going forward.” said.
*This is not investment advice.