Lawmakers Demand SEC Approve Spot Bitcoin ETPs Immediately, Citing Court Ruling

A group of bipartisan lawmakers penned a letter to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler urging the approval of spot Bitcoin BTC/USD exchange-traded products (ETPs).

The lawmakers emphasized the need for the SEC to cease any discriminatory actions against spot Bitcoin ETPs.

This move is expected to be a focal point of discussions at Benzinga's Future of Digital Assets conference on Nov. 14, when industry leaders will explore the evolving landscape of digital assets and the implications of regulatory decisions on the market.

The letter, written jointly by Reps. Mike Flood (R-Neb.), Tom Emmer (R-Minn.), Ritchie Torres (D-N.Y.) and Wiley Nickel (D-N.C.), referenced a recent ruling by the U.S. Court of Appeals for the District of Columbia in the case of Grayscale Invs., LLC v. SEC.

The court upheld Grayscale's stance that the SEC violated the Administrative Procedures Act by denying its application to convert the Grayscale Bitcoin Trust GBTC into a spot Bitcoin ETP.

The Court of Appeals highlighted Grayscale's proposed Bitcoin ETP is "materially similar" to the approved Bitcoin futures ETPs, and the SEC's inconsistent treatment of the two was deemed "unlawful."

Also Read: Is the Bitcoin Market Overheated, Overleveraged? Why These Analysts Are Cautioning Traders

During his tenure at the SEC, Genser consistently encouraged digital asset firms to register with the SEC. In light of the Court of Appeals' decision and Gensler's stance, the lawmakers argued there was no valid reason to continue denying applications for a regulated spot Bitcoin ETP.

Such an ETP, the company contended, would enhance investor protection by offering safer and more transparent access to Bitcoin.

The letter concluded with a strong call to action, urging Gensler to "approve the listing of spot-Bitcoin ETPs immediately," emphasizing the role of Congress in ensuring the SEC greenlights investment products that align with congressional requirements.

Meanwhile, the decision regarding the proposed ARK 21Shares Bitcoin ETF by the Securities and Exchange Commission has been postponed to Jan. 10, 2024.

In a filing, the SEC stated an extended timeframe is necessary to adequately evaluate the suggested rule alteration.

Read Next: Chase's Crypto-Related Transactions Ban In UK: A Sign Of The Times — Or A Sign Of Weakness?

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!