The Chamber of Digital Commerce, a crypto advocacy group, has called on the Securities and Exchange Commission, SEC, to approve applications for Bitcoin exchange-traded funds (ETFs) for the benefit of investors located in the United States.
In a Monday report titled “The Crypto Conundrum,” the Chamber of Digital Commerce he said The US lags behind other countries whose residents have access to crypto investment tools including Bitcoin (BTC) ETFs. The cryptocurrency advocacy group added that “there have been 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 in earlier denying the applications was “misguided and counterproductive.”
“As the SEC continues to stonewall, the United States continues to lag behind other countries as capital that would be invested in the United States and managed by American firms employing American persons is instead deployed in other, more innovation-friendly countries,” the Chamber of Digital Commerce said – naming Canada, Germany, Sweden, Switzerland and Australia.
The time has come for US investors to have access to ETFs they hold directly #bitcoin.
— Digital Chamber of Commerce (@DigitalChamber) September 12, 2022
A cryptocurrency advocacy group has hit back at the SEC, citing its duty to protect investors, by refusing to approve a bitcoin ETF, saying its actions encouraged investors “to get their exposure. [to crypto] in a less regulated and/or foreign environment where they are much more susceptible to unscrupulous actors and the risks of self-reliance.”
“The SEC has now positioned itself as a deserving regulator in this matter. It found that the American public cannot yet handle the responsibility of familiar, cost-effective, liquid, transparent and regulated access to bitcoin markets. Unfortunately, the cost of that position has fallen and will continue to fall for US investors and US capital markets.”
“We cannot deny the huge demand for exposure to this new and innovative asset class,” he said Founder and CEO of the Chamber of Digital Commerce Perianne Boring in an interview with Fox Business on Monday. “One would think that our regulators would work with the industry to bring regulated products to market for retail investors, but they have been stopped every time they have tried over the last decade.”
According to the report, part of the SEC’s motivation for continuing to reject BTC ETF applications may be political. The CDC said SEC Chairman Gary Gensler’s efforts to expand the regulator’s authority to include many crypto products was in effect a “jurisdictional land grab.” The group claimed that his positions also severed relations between regulators and token issuers.
To date, the US financial regulator has rejected spot bitcoin ETF applications from 16 companies that often say proposed rule changes to 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, stating that “the United States is no closer to having a Bitcoin ETF than when Cameron and Tyler Winklevoss submitted a request. the first listing for a Bitcoin ETF in 2013.” However, the SEC does gave the green light to several ETFs associated with BTC futures.