Members of the House Financial Services Committee, representing both major political parties, have joined forces to advocate for the approval of Bitcoin ETF (exchange-traded funds).
In a letter addressed to Securities and Exchange Commission (SEC) Chair Gary Gensler, four committee members emphasized the need for regulatory action on Bitcoin ETF applications. Their call comes in the wake of a recent court decision that challenged the SEC’s stance on cryptocurrency ETFs.
A Bipartisan Letter to the SEC
The letter, signed by Representatives Mike Flood (R-Neb.), Tom Emmer (R-Minn.), Wiley Nickel (D-N.C.), and Ritchie Torres (D-N.Y.), was sent to SEC Chair Gary Gensler. It underlines the notion that a spot Bitcoin ETF is fundamentally similar to crypto futures ETFs, which have already received regulatory approval from the SEC.
The lawmakers argue that given this similarity, the SEC should greenlight outstanding Bitcoin ETF applications, including those submitted by industry giants like Fidelity, BlackRock’s iShares, and Grayscale Investments.
A Reversal of the SEC’s Stance On Bitcoin ETF
The bipartisan group of lawmakers contends that the SEC’s current stance on Bitcoin ETFs is unsustainable., sspecially in light of a recent decision by the D.C. Circuit Court of Appeals. However, the court instructed the SEC to reevaluate its position on these ETFs, criticizing the agency’s previous rejection of Grayscale’s application as “arbitrary and capricious.”
In response, the lawmakers assert that there is no reason to persist in denying ETF applications under inconsistent and discriminatory standards.
Immediate Action Requested
Moreover, in their letter, the House members urged the SEC to promptly approve the pending Bitcoin ETF applications. The timing of their appeal is significant, as Gary Gensler was scheduled to appear before HFSC for SEC oversight hearing. Moreover, this hearing provided an opportunity for committee members to question Gensler directly about the topic of Bitcoin ETFs.
The Potential of Bitcoin ETF
However, Bitcoin ETFs have the potential to simplify investors’ access to the cryptocurrency market offering a straightforward means of investing in and trading Bitcoin through brokerage accounts. Also, the appeal for regulatory approval of these ETFs reflects growing interest in cryptocurrency investment products within the broader financial industry.
Moreover, the bipartisan effort within the House Financial Services Committee underscores the importance of regulatory clarity in the cryptocurrency space. As cryptocurrency investment products gain traction, lawmakers are calling for consistency in the SEC’s approach to approving Bitcoin ETFs.