Congressmen Fight With SEC for BTC Spot ETFs

Congressmen Fight With SEC for BTC Spot ETFs
  • U.S SEC disapproves of BTC spot ETFs.
  • However, BTC Futures ETFs have been approved by the SEC  .
  • Congressmen vividly fought back questioning Gary Gensler, the chairman of the U.S SEC.

The Exchange-Traded Fund (ETF) is one of the most sorted out investments in regards to the stocks. In such aspects, immersing the crypto industry into ETFs is a process which has been active over a time period. 

In addition, the most preferred for the ETFs will obviously be the number one game player in the industry, the Bitcoin (BTC). Therefore, the enabling of BTC ETFs process has been vividly going on through the U.S Securities Exchange Commission (SEC)

Accordingly, the U.S SEC has approved the BTC Futures ETFs, whereas the BTC Spot ETF is still not. This has created quite an unfair situation and ruptures among the crypto industry. 

In order to better understand, the Futures ETF is actually a fund which holds the contracts to either buy or sell the commodity at a fixed date or time.  On the other hand, the Spot ETF is a fund which directly holds the commodity. 

In spite of this, the congressmen, Todd Emmer and Darren Sotto put out a letter to Gary Gensler, the chairman of the U.S SEC, questioning him regarding the disapproval of the BTC Spot ETFs. 

Questions of Emmer & Sotto

Regarding all this dispute, the congressmen Todd Emmer and Darren Sotto sent out a letter officially to the U.S SEC. 

Upon the letter, Todd Emmer denotes that the decisions made by the SEC are totally unacceptable. In addition, he points out that if the SEC couldnt denote the differences based on the material in regards to the risk criterias, then SEC must approve the BTC Spot ETF too.  

Besides, Darren Sotto points out that the BTC has been a vital soul driver of the economy vividly.

 In such aspects it is extremely important to orderly regulate and establish BTC such that maximum benefits could be reaped out of it and also at lower risk levels, Sotto terms. 

Moreover, Sotto says that it’s the duty of the SEC along with everyone to ensure investors have consistency.

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A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.