The Congress of The United States has released an official letter dated 26 September 2023 addressing the Chair of the Securities and Exchange Commission, Gary Gensler, urging him to immediately approve Bitcoin EFT.
What the Letter States
The letter mentions the order passed in the case of Grayscale Invs., LLC v. SEC by the United States Court of Appeals for the District of Columbia. In the order, the Court of Appeal held that Grayscale’s proposed Bitcoin ETP is “materially similar, across relevant regulatory factors, to the approved Bitcoin futures ETPs”.
It also mentions how the Circuit Court has supported Grayscale’s claims that the SEC’s decision to reject Grayscale’s application to convert Grayscale Bitcoin Trust (GBTC) to spot Bitcoin ETP was in violation of the Administrative Procedures Act.
Urge to Approve
As a result, Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel wrote an ensembled letter to Gensler. Their claim is that a regulated spot Bitcoin ETF would provide more investor protection. The change would simplify and safeguard Bitcoin access. The letter goes on to directly state that there are no valid reasons for which the SEC has been delaying and denying the approval is discriminatory and inconsistent.
Furthermore, the SEC’s hesitancy appears increasingly contradictory with major businesses like BlackRock and Fidelity in the queue for clearances. Furthermore, this week’s House Financial Services Committee hearing gives an excellent opportunity for these concerns to be aired directly to Gensler.