The U.S. Securities and Exchange Commission (SEC) has long been criticized for its tough stance on the cryptocurrency market, as shown in part by its reluctance to establish a spot Bitcoin exchange-traded fund (ETF).
This resistance has grown so notorious in the cryptocurrency community that recent research commissioned by the Digital Chamber of Commerce accuses the SEC of harming U.S. investors by refusing them access to a trading vehicle available in other nations, as reported by CoinDesk on September 12.
Specifically, the Washington, D.C.-based advocacy group’s research asserts that the government’s securities regulator considers the public to be unprepared for such a financial instrument and that this stance is detrimental to investors:
Perianne Boring, founder and CEO of the Digital Chamber of Commerce, referred to the study as “the first complete document detailing the agency’s arbitrary and capricious actions” in evaluating spot Bitcoin ETF submissions.
She highlighted its significance by explaining: The Commission’s handling of the sector as a whole and these particular rejections need to be brought to light and held accountably, hence it is important that the relevant background information be collected in one place. When the SEC’s rejections are taken as a whole, however, a pattern develops that the agency must address or, if they cannot, Congress should take action on.
As a reminder, the SEC has received multiple applications for a spot Bitcoin ETF but has not yet approved a single one, citing its worry about possible market manipulation, despite criticism from certain Commissioners.
As reported by Finbold in July, the government is also embroiled in a legal fight with Ripple, the biggest case in the crypto field to date, during which the blockchain startup has spent more than $100 million on legal expenses.