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Congressman Slams SEC for Rejecting Fidelity's Bitcoin ETF

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Thu, 01/27/2022 - 18:21
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Alex Dovbnya
Tom Emmer keeps pressing the SEC to approve a spot Bitcoin ETF
Congressman Slams SEC for Rejecting Fidelity's Bitcoin ETF
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Minnesota representative Tom Emmer has criticized the U.S. Securities and Exchange Commission for shooting down a spot Bitcoin exchange-traded fund proposal that was filed by Fidelity’s Wise Origin Bitcoin Trust that was originally filed last March.

Emmer, who’s known as one of the crypto-friendliest voices in US Congress, described the decision as “baseless.”

The SEC has once again cited concerns related to fraud prevention and investor protection as the reason behind the rejection.

Last month, Fidelity launched a spot-based Bitcoin ETF in Canada. It is trading on the Toronto Stock Exchange.

Canada became the first country in the world to approve a Bitcoin ETF in early 2021.

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A slew of rejections

In November, Emmer and Democratic lawmaker Darren Soto sent a letter to SEC Chairman Gary Gensler, making a compelling case for approving a Bitcoin ETF.

While the SEC greenlit the first futures-based Bitcoin ETF in October, the letter argues that spot-based ETFs are more efficient.

A week ago, the formidable regulator also rejected the spot Bitcoin ETF proposal that was put forward by SkyBridge Capital and First Trust.

Valkyrie and Kryptoin’s attempt was cut short by the SEC in late December. During the same month, the SEC rejected WisdomTree's application. During the same month, the SEC denied WisdomTree's application.

The agency is also widely expected to deny a proposal submitted by Stone Ridge subsidiary NYDIG.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.