Congress Urges SEC To Approve Spot Bitcoin ETF Applications

09/27/2023

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On September 27, Congress will hold a hearing, during which SEC Chairman Gary Gensler will answer congressmen's questions about the regulator's work. One of the main issues will be the regulation of cryptocurrencies.

Members of Congress Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres, in a joint letter dated September 26, urged the SEC to immediately approve applications for spot Bitcoin ETFs, citing the legal precedent set by Grayscale. The congressmen stressed that there is no reason to continue rejecting the applications. The letter also states that a spot Bitcoin ETF would provide greater investor protection.

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

Meanwhile, the SEC has not approved any applications for spot Bitcoin ETFs. The regulator seems to have ignored the Congressional letter, as a Sept. 26 notice said the SEC has postponed its review of ARK 21Shares' Bitcoin ETF application for 60 days. The statement said the regulator was within its rights to set a longer timeframe for reviewing the application.

These events occurred on the day prior to an upcoming congressional hearing. Gary Gensler will once again appear before lawmakers to answer questions about the regulator's work. The SEC chairman's prepared speech states that most cryptocurrency companies are subject to federal securities laws.

House Financial Services Committee Chairman Patrick McHenry will also be at the hearing and is likely to criticize Gensler once again. Earlier this year, McHenry accused Gensler of failing to provide clarity on how companies fall under the federal securities law.

While Gensler will answer to Congress, another important meeting between lawmakers and the crypto industry will take place in Washington, D.C. as part of Coinbase's "Stand With Crypto" campaign.

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