SEC Boss Comments on Refusal to Approve Spot Bitcoin ETF

Alex Dovbnya

The SEC continues to kick the eye when it comes to approving a mock-based Bitcoin exchange-traded fund

Minnesota Representative Tom Emmer shared on Twitter a letter from US Securities and Exchange Commission chairman Gary Gensler explaining the rationale behind the agency’s reluctance to approve a spot-based Bitcoin ETF.

The letter made it clear that the agency was far from agreeing to approve such an investment product, and emphasized that it must ensure the prevention of fraud and manipulation in the market:

When assessing Bitcoin spot ETPS, the Commission must apply all the standards of the Exchange Act, which it has followed in connection with its orders subject to previous proposals to include Bitcoin spot ETPs.

In early November, Emmer along with Democratic Representative Darren Soto sent a bipartisan letter to Gensler, asking the two why the agency refused to approve a spot-based Bitcoin ETF.

The SEC gave the go-ahead for the first futures-based Bitcoin ETF in October, but the securities watchdog has so far rejected any proposal to launch an ETF filed on-site. Major players like NYDIG, SkyBridge Capital, WisdomTree and Fidelity have all faced rejections.

A spot ETF would provide direct exposure to the underlying, which is what makes it so desirable.

Emmer has repeatedly expressed his dismay at the SEC’s reluctance to officially approve a spot-based Bitcoin exchange-traded fund.

The Minnesota congressman has also criticized Gensler for claiming that the vast majority of cryptocurrencies are unregistered securities.

Gensler, who was sworn in last April, has taken an aggressive stance on cryptocurrencies and expressed concerns about investor protection. That said, he confirmed that the US would not go as far as following China in banning Bitcoin.

Leave a Reply

Your email address will not be published.