In a recent development, U.S. House Republican Patrick McHenry, who serves as the chairman of the House Financial Services Committee (FSC), has taken aim at the Securities and Exchange Commission (SEC) for rejecting a bitcoin spot Exchange-Traded Fund (ETF) application.
McHenry, a staunch advocate for cryptocurrency, voiced his concerns over what he perceives as a lack of transparency within the SEC and called on Chairman Gary Gensler to provide a clear explanation for the decision.
ETFs have become routine financial instruments for investors and are regulated by the SEC. McHenry highlighted this fact, emphasizing that rejecting a physical Bitcoin ETF without valid reasoning could potentially hinder the growth and adoption of cryptocurrencies in the United States. “The only reason Gensler opposes a physical Bitcoin ETF is if he wants to kill all cryptocurrencies in America,” McHenry asserted.
The SEC’s decision to reject the bitcoin spot ETF application submitted by BlackRock and others has raised eyebrows within the financial community. The regulatory body has cited insufficient information as the basis for its order to supplement the application. This move has not only disappointed industry players but has also prompted criticism from lawmakers like McHenry.
On June 29, Chairman McHenry, along with House Judiciary Chairman Jim Jordan and House Oversight and Responsibility Chairman James Comer, responded to the SEC’s administrative actions, condemning what they perceive as a lack of transparency within Gensler’s SEC. The Republican lawmakers expressed their concerns about the agency’s handling of the bitcoin spot ETF application and called for greater clarity in decision-making processes.
The clash between McHenry and Gensler underscores the ongoing debate surrounding cryptocurrencies and their regulation. While some argue for stricter oversight to mitigate risks and protect investors, others advocate for a more permissive approach to foster innovation and economic growth.
Chairman Gensler has been known for his cautious stance on cryptocurrencies, emphasizing the need for investor protection and regulation. However, his approach has drawn criticism from those who believe it may stifle the development of this emerging asset class. McHenry’s statements reflect a growing sentiment among proponents of cryptocurrencies who fear regulatory measures could impede their advancement.
Source: https://azcoinnews.com/u-s-house-financial-services-committee-chairman-gensler-opposes-bitcoin-spot-etf-to-kill-all-cryptocurrencies.html
