US Lawmakers Force SEC Chairman to Green Light BTC ETF Options
In a bipartisan effort, Representatives Mike Flood and Wiley Nickel are calling on the U.S. Securities and Exchange Commission (SEC) to greenlight options trading on Spot Bitcoin ETFs. These lawmakers wrote a letter addressed to SEC chairman Gary Gensler, inviting him to consider their demands.
SEC Chairman Gary Gensler Under Pressure to Approve Bitcoin ETF Options
The significance of this progress lies in the delay issuers faced in launching options following the historic approval of Spot Bitcoin ETFs in January. ETFs received SEC approval after a long delay and following a court decision. Flood and Nickel are now determined that the SEC will not continue to discriminate against these start-up funds.
Expressing the critical nature of approving options trading on Bitcoin ETFs, the letter underscores its importance to the investors the SEC aims to protect. Representing the perspectives of both Republicans and Democrats, Sel and Nikel underline the need for urgent action. They also encourage transparent disclosure about treating options for Bitcoin futures ETFs differently than for Spot Bitcoin ETFs.
According to a report by Axios, the letter to Gensler read: “We request that you, without delay, approve options on spot Bitcoin ETPs or provide a statement from the Commission regarding the difference in treatment between currently available options on Bitcoin futures ETFs.” Options for trading and spot Bitcoin ETPs.”
Also Read: US Bitcoin ETF Outflows Exceed $560 Million, Is More Pain Ahead?
Will the CFTC Participate?
The broader context reveals the disparity in the approval process among market share ETFs. While equity ETFs typically see approval shortly after launch, a commodity trust-based fund faces a more complex and lengthy process. This complexity stems from having to obtain approval from multiple government agencies, including the Commodity Futures Trading Commission (CFTC).
What’s more, people familiar with the matter think the CFTC, rather than the SEC, will be the primary hurdle. The CFTC’s role in approving such products also stems from the SEC’s recent conflict regarding the Ethereum (ETH) controversy. Therefore, it remains to be seen whether the CFTC and SEC will cooperate in deciding whether Bitcoin ETF options will be approved.
Also Read: BlackRock, European Bank with $600 Billion AUM Invests in Bitcoin ETF
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