The SEC said that it will be taking its time to examine the proposal to guarantee a comprehensive review.
The US Securities and Exchange Commission (SEC) has said that it would further delay verdict on ETF application from Ark 21shares Bitcoin ETF.
SEC to delay till January
According to a notice filed by the regulator on Tuesday, the commission noted that in line with the 180 days stated by the Securities Exchange Act of 1934, it shall issue an order approving or disapproving within the time stipulated in law.
Ark 21shares Bitcoin ETF was jointly presented by the CBOE BZX Exchange, 21shares, and Ark Invest on April 25, 2023.
The SEC said that it will be taking its time to examine the proposal to guarantee a comprehensive review.
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 3, and the issues raised therein,” the SEC said.
The regulator would normally announce such a delay a few days before the deadline for a decision. But the SEC announced this delay earlier than expected. It had earlier deferred its decision from August 11 to November 11. With the new delay, a decision may be expected on January 10.
The SEC also delayed its decision on the Global X Bitcoin Trust application.
Read more: Grayscale CEO says after court win: “We have to be a little bit patient,”
Congressmen want a “Yes” now!
The decision to delay the proposal comes just as members of the US Congress sent a letter to SEC Chair Gary Gensler asking him to immediately grant the spot Bitcoin ETF applications on SEC’s table.
Representatives Mike Flood, Tom Emmer, Ritchie Torres, and Wiley Nickel suggested that the agency may have been prejudiced in their letter.
The Congressional members drew attention to Grayscale Investments’ recent legal win and stressed the court’s finding that the SEC’s denial was “unreasonable and unpredictable.”
The lawmakers also stressed the potential advantages of a regulated spot Bitcoin ETF in their bipartisan correspondence. They claim that by giving investors a safer and more transparent way to access Bitcoin investments, it will improve investor protection.
According to the Congressmen, “A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent.”
“Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress,” they added.
Gensler was advised by the four lawmakers—two from each party—that there was “no reason to continue to deny” applications for spot crypto ETFs and that they should be approved right away.
“A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent. Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress. To that end, we urge you to approve the listing of spot-bitcoin ETPs immediately.”
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