Congress Pushes for Immediate Approval of Spot Bitcoin ETFs

Bipartisan Call for Action

Four U.S. Congress members are stepping up to the plate, urging SEC Chair Gary Gensler to rush the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs). In their letter dated September 26, Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres articulated concerns over what they perceive as discriminatory treatment of spot Bitcoin products. They highlighted a recent court decision in favor of Grayscale Investments, asserting that it set a legal precedent that should pave the way for future approvals.

Grayscale Court Ruling: A Game-Changer?

The lawmakers pointed out that the SEC’s hesitance hardly holds water in light of the Grayscale ruling. The court deemed the SEC’s prior reasoning for rejecting spot Bitcoin ETFs as “arbitrary and capricious,” especially considering that Bitcoin futures-linked investment vehicles have received the green light. Flood and his colleagues believe that it’s high time for the SEC to align its decisions with the evolving landscape of crypto regulation.

Benefits of a Regulated Spot Bitcoin ETP

According to the letter, a regulated spot Bitcoin exchange-traded product (ETP) would not just increase investor protection; it would also make accessing Bitcoin safer and more transparent. Here’s what they had to say:

• Increased investor safety through regulation.
• Greater transparency in the Bitcoin investment process.
• Ensure compliance with Congressional directives regarding investment products.

The Congressional Urgency

The urgency of this request was underscored as Gensler prepared to appear before the House Financial Services Committee. The four signatories are members of this committee and will likely raise these concerns during the hearing scheduled for September 27. The looming threat of a government shutdown has created an atmosphere of uncertainty in Congress, but it appears that this matter will remain unaffected by such distractions.

What Lies Ahead for Bitcoin ETFs?

Despite the pressure from Congress, the SEC continues to delay its decisions on ETF applications from major firms such as BlackRock and Fidelity. A cloud of uncertainty looms, but as we wait for the SEC to pull the trigger, one thing is clear: the push for spot Bitcoin ETFs isn’t fizzling out anytime soon. Whether these congressional efforts lead to any immediate action is still the million-dollar question. Until then, crypto enthusiasts and investors alike will be keeping a watchful eye on the unfolding drama in Washington.