In a bipartisan effort, members of Congress from both parties sent a strong message to Securities and Exchange Commission ( SEC ) Chairman Gary Gensler, calling for approval of Spot Trading funds. stop discriminatory practices.
The documents, submitted ahead of Gensler's hearing before the House Financial Services Committee, emphasized the need for fair treatment and increased investor protection in the cryptocurrency market.
Congressional pressure increases for Bitcoin ETFs to be approved
The first document, signed by representatives Tom Emmer, Mike Flood, Wiley Nickel and Ritchie Torres, emphasizes the SEC's responsibility to ensure investor protection standards are met while providing access into innovative investment products.
The representatives cited the recent Grayscale vs SEC case, in which the United States Court of Appeals for the District of Columbia ruled in favor of Grayscale, declaring that the SEC violated the Administrative Procedure Act.
The court's decision highlights the inconsistent and discriminatory nature of the SEC's position on spot Bitcoin ETFs.
Congressional support for spot Bitcoin ETFs stems from the belief that such products would enhance investor protection and promote transparency in access to Bitcoin.
Lawmakers argue that the SEC should follow its guidance by approving regulated spot Bitcoin ETFs, as market participants have heeded Gensler's call to come forward and register with the committee.
They asserted that Congress must ensure the SEC approves investment products that meet established requirements.
In a separate document, all GOP members expressed concern about the stakeholder response and its potential economic consequences.
They called for a moratorium on licensing or implementation, allowing for a comprehensive review of community input and expert analysis.
This review will include a cost-benefit analysis, review of comments, and assessment of potential complexity.
GOP members aim to develop proposals that cater to smaller investors and promote Capital formation.
Chairman McHenry warned the SEC Chairman
During the ongoing hearing, Chairman Patrick McHenry was particularly critical of Gensler's failure to meet oversight requirements. McHenry even threatened Gensler with a congressional subpoena if he ignored these demands, emphasizing the need for accountability.
According to Journalist Eleanor Terret, the difference in opinion between Democrats and Republicans about Gensler's performance at the SEC is clear and reflects growing impatience among lawmakers.
One of the key points raised during the hearing was whether Bitcoin should be classified as a security or not.
Gensler clarified that Bitcoin does not meet the Howey Test, which determines XEM an asset qualifies as a security under current law.
As the hearing took place, the focus remained on Chairman Gensler and his response to congressional concerns.
The outcome of this engagement will have important implications for the future of the Bitcoin ETF and the overall regulatory framework for cryptocurrencies.
General Bitcoin News.
