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Now that Bitcoin ETFs are legal, the SEC’s chairman says future Bitcoin ETFs are being “carefully considered”

Gary Gensler reiterated his position on technology neutrality, but said he would give “careful consideration” to the concerns raised by Representatives Tom Emmer and Darren Soto. The chairman of the Securities and Exchange Commission, Gary Gensler, has responded to a letter from lawmakers calling the regulator’s refusal to approve Bitcoin spot exchange-traded funds “unacceptable.”

In a letter to Minnesota Representative Tom Emmer on Tuesday, Gensler hinted that the SEC was no closer to approving a Bitcoin (BTC) spot ETF in the United States capable of preventing “fraudulent and manipulative acts and practices” under Exchange Act standards. Gensler reiterated his position on technology neutrality, but said he would give “careful consideration” to the concerns raised by Emmer in November.

 

Gensler took more than three months to respond to Emmer and pro-crypto Representative Darren Soto’s letter. The pair urged the SEC to approve Bitcoin spot ETFs, with Soto describing crypto as a “driver of economic growth” in the United States and emphasizing the importance of “clearly regulating it in order to maximize the potential benefits and mitigate any risks.”

“The SEC’s approach to cryptocurrency regulation has been unacceptable,” Emmer wrote in a letter in November.

“While the trading of Bitcoin futures ETFs is a significant step forward for the millions of American investors who have long sought regulatory clarity, it does not make sense that Bitcoin spot ETFs cannot also begin trading.”

To date, the SEC has not approved any Bitcoin spot ETF application from a financial institution, despite some lawmakers and industry leaders criticizing the commission’s inaction for slowing the United States’ adoption of new investment vehicles. Many companies filed crypto “strategy” ETF applications with the SEC after Gensler hinted in August 2021 that he would be more open to accepting ETFs based on crypto futures rather than direct exposure. Since then, the commission has approved ETFs linked to Bitcoin futures from Valkyrie, ProShares, and VanEck.

Companies continue to file applications for crypto spot ETFs, with the SEC recently rejecting those from Fidelity, SkyBridge, and WisdomTree. In March, the regulatory body is expected to make a decision on NYDIG’s application for a spot Bitcoin ETF.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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