Cryptocurrency advocacy group Digital Commerce Association has asked the Securities and Exchange Commission (SEC) to approve applications for Bitcoin exchange-traded funds (ETFs) for the benefit of investors based in the United States.
In a report Monday titled “The Crypto Conundrum,” the Digital Chamber of Commerce said the United States lags behind other countries whose residents have access to cryptocurrency investment vehicles, including Bitcoin ETFs (BTC). The group added that there were “no reported cases of hacking or theft, and no indication of market manipulation” related to Bitcoin ETFs published abroad, suggesting that the SEC’s reasoning for rejecting previous applications ” misleading and counter-productive. »
“As the SEC continues to stonewall, the United States continues to fall behind other countries because the capital that would be invested in the United States, that would be managed by American companies that would employ people instead, being deployed in other countries that are more friendly to innovation. countries,” said the Digital Chamber of Commerce, which names Canada, Germany, Sweden, Switzerland and Australia.
Now is the time for US investors to have access to ETFs that hold directly #bitcoin.
Download The Crypto Conundrum to read the whole saga.https://t.co/jJwWcAW8IT pic.twitter.com/UPT6V2AlJ6
— Digital Chamber of Commerce (@DigitalChamber) September 12, 2022
The time has come for US investors to have access to an ETF that holds #bitcoin directly. Download The Crypto Conundrum to read the whole saga.https://t.co/jJwWcAW8IT pic.twitter.com/UPT6V2AlJ6 — The Digital Chamber of Commerce (@DigitalChamber) September 12, 2022.
The cryptocurrency advocacy group pressured the SEC citing its duty to protect investors to deny approval of a Bitcoin ETF, saying its actions encouraged investors to “get their exposure [à la cryptomonnaie] in a less regulated and/or foreign environment where they are much more likely to face unscrupulous actors and self-defense risks. »
“The SEC is now positioned as a worthy regulator of this issue. She concluded that the American public cannot yet take responsibility for informed, profitable, liquid, transparent and regulated access to Bitcoin markets. Unfortunately, the cost of this job has fallen, and will continue to fall, on US investors and US financial markets. »
“We cannot deny the huge demand for exposure to this new and innovative asset class. said Perianne Boring, founder and CEO of the Digital Chamber of Commerce, in an interview Monday on Fox Business. “You would think our regulators would work with the industry to bring regulated products to market for retail investors, but they have been shut down at every attempt for the last decade.”
According to the report, part of the motivation behind the SEC’s continued rejection of BTC ETF applications may be political. The CDC said SEC Chairman Gary Gensler’s efforts to expand the regulator’s authority to include many cryptocurrency products were effectively a “jurisdictional joke.” The group claimed that their positions reduced the involvement between regulators and token issuers.
Also read: SEC May Approve Spot Bitcoin ETFs As Soon As 2023 – Bloomberg Analysts
So far, the US financial regulator has rejected Bitcoin ETF applications from 16 companies, often saying that proposed rule changes that allow exchanges to list investment vehicles “were not designed to prevent fraudulent and manipulative acts and practices. The CDC report claimed that advocacy groups have made “little, if any, progress” in persuading the SEC to change its position on the matter, claiming that “the United States is no closer to having a Bitcoin ETF at them.” than when Cameron and Tyler Winklevoss filed the first registration statement for a Bitcoin ETF in 2013.” However, the SEC has given the green light to several ETFs linked to BTC futures.