In a letter dated September 26th addressed to Gary Gensler, four U.S. Representatives, namely Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres, accused the SEC of unfairly treating exchange-traded products related to spot Bitcoin.
They argued that the SEC’s stance contradicted the legal precedent established when Grayscale Investments successfully had its ETF offering reviewed.
These lawmakers asserted to Gensler that there was no valid reason to continue rejecting applications for spot cryptocurrency ETFs after the court decision favoring Grayscale.
In that ruling, the court found that the SEC’s rationale for denying such products was arbitrary and not well-justified, especially considering that the SEC had already approved investment vehicles linked 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.
The letter added, “Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress.”
Before Gary Gensler was set to appear before the House Financial Services Committee to discuss SEC oversight, four committee members questioned SEC discrimination towards crypto industry.
Throughout your tenure at the SEC, you’ve frequently emphasized the importance of digital asset companies registering with the SEC.
Many players in the market have taken your advice to heart and have submitted applications for a regulated bitcoin exchange-traded product (ETP).
Now that the Court of Appeals has ruled, it seems there’s no valid basis to keep rejecting these applications using inconsistent and unfair criteria.
These four lawmakers might talk about this request during the September 27th hearing. It’s worth noting that the government shutdown threat probably won’t impact this hearing, as lawmakers haven’t agreed on spending yet.