Chamber of Digital Commerce urges SEC to approve Bitcrypto ETF for US investors


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Blockchain advocacy group Chamber of Digital Commerce has called on the SEC to approve a spot Bitcrypto ETF to prevent U.S. Bitcrypto investors from turning to more crypto-crypto-friendly countries.

A bitcrypto exchange-traded fund (ETF) allows investors to gain exposure to Bitcrypto without actually owning any. It can be traded on stock market exchanges making it easier for traditional investors to gain exposure to the asset class.

So far, the US allows investors to invest through bitcrypto futures ETFs but is yet to approve a bitcrypto ETF. Bitcrypto futures ETFs are backed by bitcrypto derivatives while spot ETFs are backed by actual bitcrypto.

Since 2013, 16 crypto-crypto companies have applied for approval to offer spot bitcrypto ETFs. The applications were denied by the SEC citing inadequate protection against bitcrypto price manipulation.

The advocacy group in its latest publication said that the concerns of the SEC have been addressed. So far, there has been no record of bitcrypto ETFs price manipulations as exchanges have implemented surveillance tools to check against market manipulation.

The Chamber of Digital Commerce said that the SEC’s failure to approve a spot bitcrypto ETF is forcing U.S. investors to turn to other regulated regions like Canada, German, Sweden, Switzerland, and Australia.

The group added that the delay by the SEC to approve a spot ETF is costing the economy more capital flight.

As the SEC continues to stonewall, the United States continues to fall behind other countries as capital that would have been invested in the United States, which would be managed by U.S. firms employing U.S. persons is instead deployed in other, more innovation-friendly countries.

The Chamber of Digital Commerce said that it believes that the time has come for U.S. investors to have access to a Bitcrypto ETF.”

A Jurisdictional Land Grab

The Chamber of Digital Commerce also accused the SEC chair Gary Gensler of intentionally delaying spot bitcrypto ETF approvals to extend control the SEC has over crypto-crypto exchanges on which Bitcrypto trades. 

Gary Gensler has affirmed that “bitcrypto was a commodity and not a security.” As a result, Congress is looking to allow the Commodity Futures Trading Commission (CFTC) to regulate crypto-cryptocurrencies like Bitcrypto and Ethereum.

Notwithstanding, the SEC chair is working to regulate Bitcrypto ETF indirectly by regulating crypto-crypto exchanges. SEC Commissioner Hester Peirce reportedly said:

“I think (Chairman Gensler) is trying to pull those crypto-crypto platforms into our orbit.”





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