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A group of U.S. Congress members sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler on Tuesday, urging the agency to “approve the listing of spot-bitcoin ETPs immediately.”
The letter was signed by Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel. The lawmakers argued that a regulated spot bitcoin exchange-traded fund (ETF) would “increase investor protection” by providing safer and more transparent access to bitcoin investments.
“Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress,” the letter stated.
Last month, the U.S. Court of Appeals for the District of Columbia Circuit rejected the SEC’s argument that bitcoin markets are “uniquely resistant to manipulation” and not yet mature enough for ETF approval. The court ruled that this claim did not justify the SEC’s decision to deny Grayscale’s proposed bitcoin ETF.
Citing this, the Congress members wrote, “There is no reason to continue to deny such applications under inconsistent and discriminatory standards.” They argued that the SEC’s stance is “untenable moving forward.”
The SEC has repeatedly blocked proposals for spot bitcoin ETFs, despite applications from major financial firms including Fidelity, BlackRock, Bitwise, VanEck, Galaxy, Invesco, and WisdomTree. The agency has only approved bitcoin futures ETFs so far, drawing criticism over inconsistent standards.
The lawmakers told Chair Gensler, “A spot bitcoin ETP is indistinguishable from a bitcoin futures ETP. Thus, the SEC’s current posture is untenable moving forward.” They pressed the SEC to quickly approve a spot Bitcoin fund.