US SEC Criticized for Inadequate Claim Over Spot Bitcoin ETF Filings

• Patrick McHenry encouraged the US SEC to investigate the possibility.
• Last month, the SEC authorized a Bitcoin ETF that uses leverage.

Reports of the US SEC labeling financial titans’ registrations for spot Bitcoin ETFs as “inadequate” prompted US House Financial Services Committee Chairman Patrick McHenry to issue a warning to Chair Gary Gensler via Twitter. The crypto community has ridiculed the US SEC for approving a Bitcoin ETF based on leveraged futures but not a spot Bitcoin ETF.

Republican Chairman of the US House Financial Services Committee Patrick McHenry has already said that he would carefully monitor the US SEC’s reaction to the Bitcoin ETF registration by financial services major BlackRock.

Curbing Crypto Innovation in the U.S

According to Patrick McHenry, if the US SEC’s claims are accurate, Gary Gensler has a lot of explaining to do. Claiming that a spot Bitcoin ETF would provide investors access to a regulated product, he encouraged the US SEC to investigate the possibility.

He also speculated that Gary Gensler’s desire to put an end to crypto innovation in the United States was the only possible explanation for its rejection.

When it comes to the “surveillance-sharing agreements” and the spot Bitcoin exchange that the tech giants would utilize, the US SEC has simply warned Nasdaq and CBOE that they need to re-file applications.

Subsequently, Fidelity and other asset managers identified Coinbase as the market for its surveillance. Last month, the SEC authorized a Bitcoin ETF that uses leverage, drawing ridicule from the Bitcoin community since the SEC had previously denied a spot Bitcoin ETF.

Application of these tech giants for spot Bitcoin exchange-traded fund (ETF), has stimulated a rebound in the larger cryptocurrency market. Bitcoin is stable above the $30k level with other altcoins also on the rebound.

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