The Digital Chamber of Commerce is fighting for a spot bitcoin ETF in the United States. Plus, that goes for President Gensler’s throat. The organization does not mince its words in the report entitled “The cryptographic enigma. Why doesn’t the SEC approve a Bitcoin ETF?The Digital Chamber of Commerce maintains that all standards required by the SEC have been met, but a Bitcoin ETF is as far from approved as when the Winklevoss twins first requested it in 2013.
“Since then, the SEC has rejected every application to list a Bitcoin ETF on a national securities exchange, citing a range of concerns that this report will demonstrate have been fully addressed by asset managers seeking to offer a provides responsible, transparent and regulated exposure to bitcoin to retail and institutional investors.
Before exploring their arguments, you should know that the digital chamber of commerce defines itself as a “professional association representative of the blockchain technology ecosystem. Our mission is to promote the acceptance and use of digital assets and blockchain technologies. So, despite the official-looking name, it is not a government institution.
What does the Chamber of Digital Commerce argue?
What games is the SEC playing? Why doesn’t the US have a spot Bitcoin ETF yet? “To date, at least 16 different companies have applied to the SEC for the right to offer a Bitcoin ETF to U.S. investors. All of these applications have been denied, some multiple times,” explains the Chamber of Digital Commerce. organization, companies applying for the ETF have done everything in their power to comply with the SEC and the response remains negative.
“Rather than playing a leadership role in the responsible adoption of new technologies and products, the United States is falling behind the rest of the world as more countries endorse these products. USA is increasingly seen as an undesirable place for innovators in the digital asset space to conduct operations due to the current regulatory environment.
The Chamber of Digital Commerce warns that capital that would have been invested in the United States has been “deployed in other countries more favorable to innovation”. Other advanced economies like “Canada, Germany, Sweden, Switzerland, and most recently Australia,” have already endorsed Bitcoin ETFs. And “to date, there have been no reported cases of hacking or theft and no indication of market manipulation regarding these internationally listed Bitcoin ETFs”, underlines the Chamber of Digital Commerce.
BTC price chart for 09/13/2022 on Bitstamp | Source: BTC/USD on TradingView.com
The standard has been met
The Digital Chamber of Commerce soon takes off its gloves and goes after Chairman Gensler’s throat: “After nearly a decade of working with the SEC on the pursuit of a Bitcoin ETF, few market participants believe that the The real reason the SEC keeps issuing denials on Bitcoin ETF applications has a lot to do with the legal standards the SEC cites in its denials. According to the Chamber of Digital Commerce, the standard has been met.
The organization offers a theory:
“There is broad consensus that Chairman Gensler is now seeking to oversee cryptocurrency exchanges through the SEC’s own regulatory mechanism. In a February 2022 interview, SEC Commissioner Peirce echoed the widespread belief regarding Chairman Gensler’s intentions: “I think [Chairman Gensler] trying to pull these crypto platforms into our orbit,” she said.
The Digital Chamber of Commerce also offers a surprisingly bold solution:
“Legal action against the SEC, once considered an unthinkable approach, is now one of the most viable options for eventually commercializing a Bitcoin ETF. However, litigation is inherently uncertain and litigation against the government is notoriously time-consuming and expensive.
The Chamber of Digital Commerce Vs. President Gensler
In case anyone missed their accusation the first time around, the Chamber of Digital Commerce explains their theory one more time. With even more details:
“It’s becoming clear that Chairman Gensler has no intention of approving a Bitcoin ETF until the SEC’s regulatory authority is expanded to cover cryptocurrency exchanges, whether through legislation, unilateral SEC regulation, or SEC enforcement actions, creating a belief among market participants that the real pretext for application denials is not based on a legal standard not satisfied, but rather as a means of effecting a judicial seizure of land.
The organization ends its study with combative words:
“Unfortunately, it is becoming increasingly likely that it will take litigation or targeted efforts by Congress to break the SEC’s increasingly arbitrary and unwarranted treatment of this important investment product.”
So yes, the Digital Chamber of Commerce is not playing. Even though his study also reads like a desperate plea for validation. The organization has always gone down the President’s throat, and that counts.
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