Cryptocurrency advocacy group Chamber of Digital Commerce has called on the Securities and Exchange Commission, or SEC, to approve applications for Bitcoin exchange-traded funds in the interest of investors based in the United States.
In a Monday report titled “The Crypto Conundrum,” the Digital Chamber of Commerce said the U.S. has lagged behind other countries around the world whose residents have access to crypto investment vehicles, including Bitcoin (BTC) ETFs. . The cryptocurrency advocacy group added that there were “no reported cases of hacking or theft and no evidence of market manipulation” related to Bitcoin ETFs launched overseas, suggesting that the SEC’s reasoning for rejecting applications in the past was “incorrect and counterproductive”.
“As the SEC continues to crack down, the United States continues to fall further behind other countries as capital that would have been invested in the United States, managed by American companies that employ Americans, is instead deployed in other, more innovative— friendly countries,” said the Chamber of Digital Commerce — citing Canada, Germany, Sweden, Switzerland and Australia.
The time has come for US investors to have access to an ETF that they own directly #bitcoin.
Download The Crypto Conundrum to read the full saga.https://t.co/jJwWcAW8IT pic.twitter.com/UPT6V2AlJ6
— Digital Chamber of Commerce (@DigitalChamber) September 12, 2022
The cryptocurrency advocacy group hit back at the SEC citing its duty to protect investors by denying approval of 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 dangers of self-dealing’.
“The SEC has now positioned itself as a meritocracy regulator in this matter. It has determined 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 this position has fallen and will continue to fall to US investors and US capital markets.”
“We cannot deny the tremendous demand for exposure to this new and innovative asset class,” Chamber of Digital Commerce founder and CEO Perianne Boring said in an interview Monday with Fox Business. “You would think that our regulators would work with the industry to bring regulated products to market for retail investors, but they have stalled in every effort for the past decade.”
According to the report, part of the motivation behind the SEC continuing to deny 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 essentially a “jurisdictional land grab.” The group claimed that its positions also cut off much of the engagement between regulators and contract issuers.
Related: SEC Could Approve Spot Bitcoin ETFs As Early As 2023 — Bloomberg Analysts
To date, the US financial regulator has rejected Bitcoin ETF applications from 16 companies, often citing proposed rule changes that allow exchanges to list the investment vehicle were not “designed to prevent fraudulent and manipulative acts and practices.” The CDC report claimed that advocacy groups had made “little, if any, progress” in persuading the SEC to change its position on the matter, saying “the United States is no closer to having a Bitcoin ETF than what 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 tied to BTC futures contracts.