Chamber of Digital Commerce urges SEC to approve Bitcoin ETF for US investors
Blockchain advocacy group Chamber of Digital Commerce has asked the SEC to approve a spot Bitcoin ETF to prevent US Bitcoin investors from turning to more crypto-friendly countries.
A bitcoin exchange-traded fund (ETF) allows investors to gain exposure to Bitcoin without actually owning any. It can be traded on exchanges, making it easier for traditional investors to gain exposure to the asset class.
So far, the United States allows investors to invest through bitcoin futures ETFs, but has yet to approve a bitcoin ETF. Bitcoin futures ETFs are backed by bitcoin derivatives while spot ETFs are backed by actual bitcoin.
Since 2013, 16 crypto companies have applied for approval to offer spot bitcoin ETFs. The applications were denied by the SEC citing insufficient protection against bitcoin price manipulation.
The advocacy group said in its latest publication that the concerns of the SEC have been addressed. So far, there has been no record of price manipulation on bitcoin ETFs as exchanges have implemented monitoring tools to check against market manipulation.
The Chamber of Digital Commerce said the SEC’s failure to approve a spot bitcoin ETF is forcing US investors to turn to other regulated regions such as Canada, Germany, Sweden, Switzerland and Australia.
The group added that the delay by the SEC in approving a spot ETF is costing the economy more capital flight.
As the SEC continues to shut down, the United States continues to fall behind other countries as capital that would have been invested in the United States, managed by American firms employing American people, is instead deployed in other, more innovation-friendly countries.
The Chamber of Digital Commerce said they think so “the time has come for US investors to have access to a Bitcoin ETF.”
A jurisdictional land grab
The Chamber of Digital Commerce also accused SEC Chairman Gary Gensler of intentionally delaying spot bitcoin ETF approvals to expand the control the SEC has over crypto exchanges where Bitcoin trades.
It is becoming clear that the true pretext for blocking #bitcoin ETF applications are not based on an unmet legal standard, but rather as a means of effecting a jurisdictional land grab. 5/7 pic.twitter.com/4y2ptkZovH
— Chamber of Digital Commerce (@DigitalChamber) 12 September 2022
Gary Gensler has confirmed that “bitcoin was a commodity and not a security.” As a result, Congress wants to allow the Commodity Futures Trading Commission (CFTC) to regulate cryptocurrencies such as Bitcoin and Ethereum.
Despite this, the SEC head is working to regulate Bitcoin ETFs indirectly by regulating crypto exchanges. SEC Commissioner Hester Peirce reportedly said:
“I think (Chairman Gensler) is trying to pull these crypto platforms into our orbit.”
