Lawmakers are pressuring the U.S. Securities and Exchange Commission (SEC) to promptly approve Bitcoin spot ETFs. The SEC has been criticized for its enforcement actions and lack of clarity in regulating the cryptocurrency industry. Recently, the SEC has faced defeats in court, highlighting the need for proactive regulation. Cryptocurrency companies, like Coinbase, assert that they do not offer investment contracts and compare their services to the sale of assets like land or collectibles. While these victories for cryptocurrency companies are significant, they do not completely resolve the issues at hand. Congressional action may be required to bring resolution. The SEC’s role is to protect investors, facilitate capital formation, and maintain fair markets. Commissioner Hester Peirce emphasized that the SEC does not have the authority to decide where individuals should invest their money but instead aims to empower them with accurate information. The approval of a Bitcoin spot ETF would provide a simpler way for investors to access the cryptocurrency market. Transparency and disclosures from cryptocurrency projects could help maintain the SEC’s role without overstepping its boundaries. House lawmakers are urging the immediate approval of outstanding ETF applications, and SEC Chair Gary Gensler will address this topic during an oversight hearing.
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