Bipartisan Push from House Members Urges SEC to Clear Bitcoin ETFs

A group of bipartisan lawmakers, including the House’s majority whip Rep. Tom Emmer, is pressing the U.S. Securities and Exchange Commission (SEC) to speed up the process for approving bitcoin exchange traded funds (ETFs). This collective nudge came just as SEC Chair Gary Gensler is set to appear before the House Financial Services Committee. The SEC had previously faced legal challenges concerning their decision to deny Grayscale’s spot bitcoin ETF application.

It seems the time might be ripe for the SEC to consider applications from other financial giants like Fidelity, BlackRock’s iShares, and Grayscale Investments. These companies are eagerly waiting for an opportunity to enter the cryptocurrency ETF domain.

The Committee members, comprising of Reps. Mike Flood, Tom Emmer, Wiley Nickel, and Ritchie Torres, addressed their concerns in a letter, stating, “Following the Court of Appeals’ decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards.” Their reference is to the recent ruling by Circuit Judge Neomi Rao of the D.C. Circuit Court of Appeals, who found the SEC’s rejection of Grayscale’s application as “arbitrary and capricious.”

There’s an ongoing belief among these members that there’s little difference between crypto futures ETFs and a spot bitcoin ETF. They argue that if the former can get approval, why not the latter? For investors, a bitcoin ETF means an uncomplicated avenue to invest in cryptocurrencies via their brokerage accounts.

With Gensler’s impending appearance before the House Committee, these members will undoubtedly have the opportunity to bring up their concerns directly. Representatives like Emmer, Flood, and Torres, all part of the Congressional Blockchain Caucus, will be keenly watching the SEC’s next moves.