In order to urge the SEC to approve Bitcoin spot ETFs (BTC), 4 members of the US Congress have sent a letter to Gary Gensler. What does it say?
4 members of Congress challenge the SEC and Gary Gensler
When it comes to prosecuting crypto platforms for “selling unregistered securities”, it’s the Securities and Exchanges Commission’s (SEC) stance on Bitcoin spot ETFs (BTC) that is making a name for itself in the Web3 industry. In fact, the government agency has just postponed its decision on Ark Invest’s ETF until January 10, 2024.
It’s in this climate that 4 members of the US Congress have sent a letter to Gary Gensler, questioning his and the SEC’s position on Bitcoin ETFs.
Specifically, the letter mentions Exchange Traded Products (ETPs), but these are in fact the general category in which ETFs are included:
NEW: A bipartisan letter sent to @GaryGensler by GOP members @GOPMajorityWhip and @USRepMikeFlood, and Democrats @RitchieTorres and @RepWileyNickel urging the @SECGov to approve a $BTC Spot ETF. pic.twitter.com/7ygTYWIPyu
– Eleanor Terrett (@EleanorTerrett) September 26, 2023
Beyond the substance, one of the letter’s notable points is that it was signed by Democrats and Republicans alike:
- Wiley Nickel (Democrat);
- Tom Emmer (Republican);
- Mike Flood (Republican);
- Ritchie Torres (Democrat).
Inconsistent and discriminatory standards
In their argument, the 4 members of Congress rely, among other things, on the U.S. Court of Appeals for the District of Columbia’s call to order regarding Grayscale’s ETF application. The court ruled against the SEC, finding that it had violated the Administrative Procedures Act when it refused the GBTC’s conversion request.
One point particularly highlighted is the great similarity between Bitcoin ETFs already approved and those still in application status. Indeed, the fact that some are based on futures contracts and others on spot prices is not a valid justification for different treatment.
Thus, the letter urges the financial watchdog to approve the listings of these funds, stating that “Congress has a duty to ensure that the SEC” issues such approvals, and that this would offer “enhanced investor protection”:
“During your time at the SEC, you’ve always said that digital asset companies should “come in and register” with the SEC. Market players relied on your statements and filed applications for a regulated spot Bitcoin ETP. Following the Court of Appeals’ decision, there is no reason to continue denying such applications under inconsistent and discriminatory standards. “
This isn’t the first time Congress has questioned Gary Gensler’s attitude towards the crypto industry. Last April, the SEC boss was indeed called to account by Patrick McHenry. While these admonitions did not prove particularly effective, the SEC’s forthcoming pronouncements will allow us to judge the effects of this latest letter.
