July 21, 2024
Bipartisan Senators Urge SEC Chair Gensler to Approve Spot Bitcoin ETF Following Key Court Decision
Policy & Regulation

Bipartisan Senators Urge SEC Chair Gensler to Approve Spot Bitcoin ETF Following Key Court Decision

Following a key court decision, a coalition of Republican and Democratic senators urged Securities and Exchange Commission Chair Gary Gensler to quickly permit the listing of a spot bitcoin exchange-traded fund. 

According to a letter written on Tuesday, Reps. Mike Flood, R-Neb., Tom Emmer, R-Minn., Ritchie Torres, D-N.Y., and Wiley Nickel, D-N.C., encouraged Gensler to approve such listings, claiming a regulated spot bitcoin ETF would improve investor safety by making access to bitcoin more open and secure.

“Congress must ensure the SEC approves investment products that meet the requirements set out by Congress,” they stated. “To that end, we urge you to approve the listing of spot-bitcoin ETPs immediately.”

Grayscale Investments won last month when the SEC was ordered to reconsider its application for a spot bitcoin ETF by three judges in the U.S. Court of Appeals for the D.C. Circuit. Following the agency’s rejection of Grayscale’s request for a spot bitcoin ETF last year, the company filed a lawsuit against it.

The SEC’s disparate handling of spot bitcoin ETFs and other funds based on futures contracts that the agency has approved was directly addressed by the court.

“The Court’s finding underscores the fundamental point,” the lawmakers stated. “A spot bitcoin ETP is indistinguishable from a bitcoin futures ETP. Thus, the SEC’s current posture is untenable moving forward.”

Gensler will address Congressmen personally rather than via the media, according to an SEC representative.

Although well-known companies like BlackRock and Fidelity have submitted proposals for funds over the past few months, the SEC has not yet approved a spot bitcoin ETF.

Separately, on Tuesday, Representative Blaine Luetkemeyer, R-Mo, wrote a letter to Gensler and the head of the Financial Industry Regulatory Authority, Robert Cook, outlining his concerns with the fact that both organizations let licensed broker-dealers with connections to the Chinese Community Party to conduct business in the United States.

In support of his claim that the guideline was too limited and insufficient, Luetkemeyer cited broker-dealers Prometheum Inc., Webull Financial, LLC, and Moomoo, Inc. as examples of U.S. companies with non-China bases that had connections to the CCP.

“The SEC’s limited effort in this regard is particularly troubling given the important role registered broker-dealers play in our financial markets, including the fact that many of these firms provide (or intend to provide) products and services directly to retail investors, which requires the collection of substantial amounts of customers’ personal information,” the lawmaker stated.

Gensler was questioned by Luetkemeyer about the agency’s worries about data security and its connections to the CCP, among other things. Cook and Gensler have until October 26 to reply.

The House Financial Services Committee, which Luetkemeyer serves on, will hear from Gensler on Wednesday.

Image: Unsplash

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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