• The U.S. The Securities and Exchange Commission (SEC) and its Chairman have received pushback from lawmakers in a recent lawsuit. 
• Gary Gensler has been advised to take the steps necessary for the approval of Bitcoin Exchange Traded Products (ETPs).

A Bitcoin Spot Exchange Traded Fund (ETF) has been a highly anticipated product for U.S.-based cryptocurrency investors. While these products have been getting a lot of pushback from regulatory bodies, a new development hints that a change might be underway.

In a letter sent to the U.S. Securities and Exchange Commission (SEC) by a handful of Congress members on Tuesday, the regulator was asked to hasten the approval of Bitcoin ETPs as soon as possible.

In the letter, signed by congress representatives, inciting Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel, the lawmakers acknowledged the significance that approval would hold in the market.

They explained that a regulated spot bitcoin exchange-traded fund (ETF) can strengthen investor’s safety and make Bitcoin investments even more accessible to interested market players. As excerpts of the letter read;

We write to ensure the Securities and Exchange Commission (SEC) does not continue to discriminate against spot Bitcoin exchange-traded products (ETPs). The SEC is responsible for making certain that products that comply with Investor protection standards are made available to investors.

This position was confirmed by the United States Court of Appeal for the District of Columbia back in August, in the Grayscale vs. SEC battle.

It is worth noting that the circuit court confirmed that the SEC did violate the Administrative Procedures Act when it denied Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) to a Bitcoin spot Exchange Traded Product (ETPs). Lawmakers wrote.

A spot Bitcoin ETP is indistinguishable from a Bitcoin futures ETP. Thus, the SEC’s current posture is untenable moving forward.

The SEC chairman has been criticized for failing to co-sign crypto firms, despite urging them to carry out necessary regulations

Gary Gensler, the current Chairman of the SEC has been criticized by many prominent cryptocurrency figures, for his position on the crypto market. During Gensler’s reign, cryptocurrency firms were sanctioned, and ETF proposals have been rejected on multiple occasions.

The lawmakers presented this in its letter, noting that Gensler had repeatedly explained that digital asset firms should attempt to register with the SEC. The letter read.

Market participants have relied on your statements and have filed applications for a regulated spot Bitcoin ETP. Following the Court of Appeals’ decision, there is no reason to continue to deny such applications under inconsistent and discriminatory standards.

Conclusively, lawmakers assert that Congress has a duty to ensure that the U.S. SEC approves investment products, as long as they meet the requirements set out by Congress.