US lawmakers call on SEC chair to approve spot Bitcoin ETFs ‘immediately’

Four members of the United States Congress are requesting Securities and Exchange Commission (SEC) chair Gary Gensler “immediately” approve the listing of spot Bitcoin (BTC) exchange-traded funds, or ETFs.

In a Sept. 26 letter to Gensler, U.S. Representatives Mike Flood, Wiley Nickel, Tom Emmer and Ritchie Torres claimed the SEC was “discriminat[ing] against spot bitcoin exchange traded products”, citing the legal precedent set by Grayscale Investments in winning a review of its own ETF offering. The four lawmakers told Gensler there was “no reason to continue to deny” spot crypto ETF applications following the Grayscale court decision, which ruled the SEC’s reasoning was “arbitrary and capricious” in having already approved investment vehicles tied to Bitcoin futures.

“A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent,” said the letter. “Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress.”

The lawmakers added:

“[W]e urge you to approve the listing of spot-bitcoin ETPs immediately.”

Bipartisan letter from @USRepMikeFlood @RepWileyNickel @GOPMajorityWhip and @RitchieTorres to SEC Chair Gensler on not approving a bitcoin spot ETF: “there is no reason to continue to deny such applications under inconsistent and discriminatory standards.” https://t.co/6x5XaUsUqT

— Ron Hammond (@RonwHammond) September 26, 2023

Related: Grayscale wins the court battle, but what does this mean for a spot Bitcoin ETF?

The request came ahead of Gensler’s scheduled appearance before the House Financial Services Committee on oversight of the SEC. All four lawmakers are members of the committee and could address the matter in the Sept. 27 hearing. The proceeding will likely not be affected by the looming threat of a government shutdown with lawmakers unable to reach an agreement on spending as of the time of publication.

To date, the SEC has not approved the listing of any spot BTC ETF. Many had expected the commission to reconsider pending ETF applications following the SEC’s loss to Grayscale in court in August. However, the regulator subsequently delayed decisions on ETFs from 7 major firms — BlackRock, WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck and Fidelity.

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