Chamber of Digital Commerce urges SEC to approve bitcoin ETF in the US

According to the organization, the actions of the regulator scare away local investors and force them to move to other jurisdictions

13.09.2022 - 12:55

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What’s new? The Chamber of Digital Commerce (CDC), which protects the rights of investors in the United States, has urged the Securities and Exchange Commission (SEC) to approve bitcoin exchange-traded funds (ETFs). According to a CDC report, the US lags far behind other countries whose residents have already gained access to such crypto investment vehicles. The report notes that the SEC has no reason to ban bitcoin ETFs, as there have been “no reported instances of hacking or theft and no indications of market manipulation” before.

The CDC’s website

What else did the report say? The CDC said that the regulator’s actions force investors to move their capital to less regulated jurisdictions, where the risk of losing their investments is much higher.

“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 report says.

The Chamber of Digital Commerce also suggested that perhaps the reason the SEC is rejecting applications for bitcoin ETFs may be political. By doing so, the regulator seeks to monopolize control of the digital asset market in the United States, the CDC suggested.

In June, digital asset management company Grayscale sued the SEC after the agency rejected its application to convert the Grayscale Bitcoin Trust (GBTC) into a spot bitcoin ETF. The SEC cited concerns about market manipulation and the lack of a clear regulatory framework. So far, the agency has not approved any such investment product. Grayscale insists that the regulator violates the Securities Act and asks for a review of the ruling.

In July, the Euronext Amsterdam exchange listed Europe’s first spot bitcoin exchange-traded fund, the Jacobi Bitcoin ETF from Jacobi Asset Management. The asset is traded under the ticker BCOIN.

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