The U.S. Securities and Exchange Commission (SEC) will continue to review Bitcoin (BTC) exchange-traded fund (ETF) proposals, according to SEC chair Gary Gensler.
U.S. Representatives Tom Emmer, a Republican from Minnesota, and Darren Soto, a Democrat from Florida, wrote Gensler in November expressing concerns and questioning why the SEC wasn’t comfortable allowing a Bitcoin spot ETF to trade.
The SEC greenlit the launch of two Bitcoin futures ETFs last October.
Emmer argues in the letter,
“While the trading of Bitcoin futures ETFs is a great step forward for the millions of American investors who have been demanding regulatory clarity, it does not make sense that Bitcoin spot ETFs cannot also commence trading.
As I am sure Chairman Gensler understands, Bitcoin futures are, by definition, a derivative of the underlying Bitcoin spot market.”
On Thursday, Emmer shared Gensler’s response to their letter.
We received a response from SEC Chair Gensler to our 11/3/21 letter regarding BTC spot ETFs. This issue remains a priority for us and we will continue to oversee the SEC in its mission to maintain fair and orderly markets and facilitate capital formation. pic.twitter.com/WbgSDj7o0T
— Tom Emmer (@GOPMajorityWhip) February 17, 2022
The SEC chair says he’s “technology-neutral” and argues that Bitcoin futures ETFs are different types of investment vehicles than Bitcoin spot ETFs, which he refers to as Bitcoin exchange-traded products (ETPs).
Gensler also notes that the SEC will consider the representatives’ concerns as they continue to review proposals.
“When reviewing Bitcoin spot ETPs, the Commission must apply all the standards of the Exchange Act, which it has followed in connection with its orders considering previous proposals to list Bitcoin spot ETPs.
In particular, the Commission must consider if the Bitcoin spot ETP proposal is designed to prevent fraudulent and manipulative acts and practices.”
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