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- Bitcoin Spot ETFs launch approval is being demanded after BTC futures product
- Congressman Todd Emmer and Darren Soto sent a bipartisan letter to the SEC chair asking why crypto spot products are being disapproved
- Soto believes that crypto has proven to be a propeller of economic growth in today’s society
Bitcoin spot ETFs are in demand in the United States after the nation witnessed its first such financial product. Gary Gensler, the US SEC chair, had approved BTC Futures-based exchange traded product (ETF). However, many firms are proposing the regulators to show some green signal to crypto spot products as well. Following the scenario, recently, two US Congressmen Todd Emmer and Darren Soto sent a bipartisan letter to the financial authority. Notably, the Congressmen were also demanding for a spot-based crypto financial instrument.
Todd Emmer and Darren Soto demands Bitcoin spot ETFs
On Wednesday, two Congressman sent a bipartisan letter to the US SEC, demanding for Bitcoin spot ETFs. In the letter, Todd Emmer and Darren Soto, strongly questioned Gary Gensler, why the agency has refused to approve the creation of BTC spot-based financial products. Indeed, also why it had denied spot products when it approved BTC Futures ETF for trading.
Crypto proved to be a driver of economic growth
It is worth noting that in a spot-based ETF, the funds hold the actual commodity. On the other hand, futures-based products hold the contract that is bought, sold, and trades the commodity at a future predicted price.
Following the difference between both the products, Minnesota Republican Emmer, underscored in a press release, that the US financial regulator’s approach to crypto regulations is entirely unacceptable. According to Emmer, if the regulatory agency cannot outline the perceived material difference in risk profiles, then it should allow exchange traded products based on spot as well.
On the other hand, Soto, a Democrat from Florida, commented that crypto has proven to be a propeller of economic growth in today’s society. Following the words, he also highlighted that it is crucial for the government to clearly regulate the industry in order to maximize the potential benefits of digital assets, while mitigating risks. Moreover it is also significant for the government to come together and ensure that investors have consistency.
United States have seen its first crypto ETF
This Uptober before the price of Bitcoins achieved a new all-time high, ProShares introduced the first BTC ETF in the US. However, after approving the first ever crypto financial product in the nation, the SEC was expected to lead the federal government’s efforts to regulate the fiat-pegged stablecoins. But it seems that it will not be the case, as the regulators also recently shot down a proposed leveraged BTC ETF.
