(ETF) U.S. crypto enthusiasts have voiced their displeasure with the U.S. Securities and Exchange Commission (SEC), led by Gary Gensler, for its stance against a Bitcoin exchange-traded fund (ETF).
The Appropriate Moment for a Bitcoin ETF
The latest report from the Chambers for Digital Commerce includes criticism of SEC chair Gary Gensler. The purpose of this report is to find out the reasons why the SEC is hesitant to greenlight a Bitcoin ETF for the American market.
Additionally, the company claims that it has complied with all SEC regulations. It is perplexing to it why the regulator has been so reluctant to give its blessing ever since the Winklevoss twins submitted their initial application in 2013. In the time since, no Bitcoin ETF has had its application for approval by the SEC.
The Chamber of Digital Commerce is a group active in the blockchain industry, so it’s worth pointing out. The industry group speaks for cryptocurrency trading platforms, digital asset services, and their suppliers.
The group’s mission is to increase the use of blockchain and other digital asset systems worldwide.
The association’s main complaint is that, almost a decade after the first application, the SEC still hasn’t approved a Bitcoin exchange-traded fund (ETF). In the United States alone, nearly sixteen companies have applied to provide Bitcoin ETFs to investors.
Moreover, the group disclosed that the United States is falling behind as other countries embrace this type of crypto product. As the United States becomes less appealing to digital asset industry innovators, they look elsewhere to set up shop.
U.S. businesses miss out on investment dollars that have migrated to countries with more favorable crypto policies. Bitcoin exchange-traded fund products have been approved in a number of countries, including Australia, Canada, Germany, Switzerland, and Sweden.
Shots Fired
After nearly a decade of close cooperation with the SEC, the Chamber of Digital Commerce has come to the conclusion that the commission is not favorable toward the cryptocurrency sector.
The SEC’s consistent rejection, according to the group, has more to do with the SEC’s legal obligation to monitor the cryptocurrency market. The general opinion among market participants is that Gensler wants the SEC to regulate the cryptocurrency industry.
An interview with an SEC commissioner from February of 2022 also sheds light on the public’s interpretation of Gensler’s motivation. Reports indicate that the commissioner has stated that Gensler is making efforts to bring cryptocurrency platforms under SEC jurisdiction.
Nonetheless, the group acknowledged that filing a lawsuit against the SEC is the surest way to compel the agency to approve a Bitcoin ETF; however, litigation against a government agency is risky, expensive, and time consuming.
Gensler, according to the Chamber of Digital Commerce, has no plans to create a Bitcoin exchange-traded fund (ETF), and even if the firm changes its mind in the future, it won’t be until the Securities and Exchange Commission (SEC) is given the authority to regulate cryptocurrency exchanges through legislation or unilateral guidelines.
Trade group urges the United States government to Legislators need to intervene to prevent the SEC from further mishandling a key investment product involving digital currencies.
It remains to be seen whether the group opts for litigation or lobbying of the United States government. Investment opportunities in Bitcoin ETFs are pending approval from Congress.
