U.S. Reps. Tom Emmer (R-MN) and French Hill (R-AR) sent a letter to Securities and Exchange Commission (SEC) Chair Gary Gensler on what they called his regulatory “inconsistency” over the treatment of spot bitcoin exchange-traded products (ETP) applications.
The lawmakers said that more than 20 spot bitcoin ETP applications have been filed with the SEC over the past decade, but none have been approved. Since he has been SEC Chair, Gensler has denied all bitcoin spot ETP applications in the United States, citing concerns over fraud and manipulation in the market.
However, the lawmakers point out that Gensler has authorized bitcoin futures ETPs to trade, even though the pricing for those futures contracts comes from the same market.
“The SEC’s approach to cryptocurrency regulation has been unacceptable,” Emmer said. “Chair Gensler has exhibited regulatory inconsistency between his treatment of bitcoin futures ETPs, which he has allowed to trade in the United States, and bitcoin spot ETPs, which he continually denies the American people from accessing. The SEC must provide consistency of treatment to the marketplace, and retail investors in the United States are worse off because of the Chair’s decision to deny all bitcoin spot ETP applications. We look forward to the SEC’s response to our concerns.”
Emmer is the House Majority Whip, while both Emmer and Hill serve as members of the House Financial Services Committee. Gensler testified before the committee this week.
“The reasoning behind the SEC’s continued refusal to approve a spot bitcoin exchange-traded products (ETPs) appears to be inconsistent and doesn’t take into account what we know from other jurisdictions where regulators have approved similar products,” Hill said.