US Congress Urges SEC to Approve Bitcoin ETF: Is This the End of the Wait?

The United States Congress has issued an official letter, dated September 26, 2023, directed at Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), urging prompt approval of a Bitcoin Exchange-Traded Fund (ETF).

Is this likely to expedite the process? Read on.

Here’s What the Letter States

The letter mentions the order passed in the case of Grayscale Invs., LLC v. SEC by the United States Court of Appeals for the District of Columbia. In the order, the Court of Appeal held that Grayscale’s proposed Bitcoin ETP is “materially similar, across relevant regulatory factors, to the approved Bitcoin futures ETPs”. 

It also mentions how the Circuit Court has supported Grayscale’s claims that the SEC’s decision to reject Grayscale’s application to convert Grayscale Bitcoin Trust (GBTC) to spot Bitcoin ETP violated the Administrative Procedures Act. 

Putting the Investor First

The Congress emphasizes the importance of approving a Bitcoin ETF, as it would greatly simplify cryptocurrency investment for the public. ETFs are specifically designed for easy trading through brokerage accounts, making it more accessible for investors.

Prominent figures advocating for this change include Rep. Tom Emmer, serving as the majority whip and a key House leadership figure, along with Reps. Mike Flood and Ritchie Torres, who are members of the Congressional Blockchain Caucus in the House. The letter directly asserts that there are no valid reasons for the SEC’s delays, labeling them as discriminatory and inconsistent.

But, why the delay?

Furthermore, the SEC’s hesitancy appears increasingly contradictory, with significant businesses like BlackRock and Fidelity in the queue for clearances. Furthermore, this week’s House Financial Services Committee hearing allows these concerns to be aired directly to Gensler.