Members of the US Congress have contacted Securities and Exchange Commission (SEC) Chair Gary Gensler, urging him to approve applications for spot bitcoin exchange-traded funds (ETFs).
The SEC has not yet approved any spot bitcoin ETFs, despite growing interest from investors and several recent applications.
JUST IN: 🇺🇸 US Congress members ask SEC Chair Gary Gensler to approve Spot #Bitcoin ETFs.
— Watcher.Guru (@WatcherGuru) September 26, 2023
A spot bitcoin ETF would allow investors to buy and sell actual bitcoin through a brokerage account. This could provide easier access to the digital currency for retail investors. However, the SEC has repeatedly denied spot bitcoin ETF applications due to concerns about potential market manipulation and the ability of fund managers to adequately protect investors.
The recent letter from Congress refers to a court victory by Grayscale, in which a judge ruled that the SEC was wrong to deny one of Grayscale’s spot bitcoin ETF applications. Grayscale has been urging the SEC to approve a spot bitcoin ETF in light of this ruling.
If approved, a spot bitcoin ETF could be an important milestone for the cryptocurrency industry. It could set standards and open the doors for other cryptocurrency-based ETFs. However, the SEC could still appeal the Grayscale decision, leaving the fate of a bitcoin ETF uncertain for now. The latest push from Congress adds pressure on the SEC to take action on this long-awaited product.
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