US lawmakers have asked the SEC to approve Bitcoin options trading.
US lawmakers are reportedly pushing the Securities and Exchange Commission to approve trading in bitcoin exchange-traded products (ETPs).
According to an Axios report, Representatives Mike Flood and Willie Nickell recently wrote a letter to Commission Chairman Gary Gensler urging the SEC to end its discrimination against crypto funds.
“Without delay, we urge you to approve spot Bitcoin ETFs or provide the Commission with an explanation of the difference between options on Bitcoin futures ETFs – which are currently traded – and options on spot Bitcoin ETFs.” Letter.
Options are financial instruments that give the buyer the right, but not the obligation, to buy or sell an asset – in this case, Bitcoin (BTC) – at a certain price on a certain date. The tool is typically used to hedge price movements, limit potential losses, and allow investors to generate additional income through strategies.
According to Flood and Nickel, the SEC's approval is critical for investors who “want to protect.”
The agency has been withdrawing decisions on applications from the New York Stock Exchange, Nasdaq and Cibo Global Markets filed in January.
Nasdaq has filed for listing and trading of options on BlackRock's iShares Bitcoin Trust, while Cboe intends to offer trading options on various BTC funds. Similarly, the NYSE intends to trade options on the Bitwise Bitcoin ETF, Grayscale Bitcoin Trusts and other trusts that hold Bitcoin.
Recently, the Commission has launched a new round of consultation on the proposed rule change to allow trading in Bitcoin funds.
According to an April 24 filing, the SEC wants to explore how Bitcoin options affect market stability, especially in volatile situations. The agency is investigating whether current market surveillance and enforcement practices are adequate to handle the complexity of bitcoin options. Participants are invited to submit initial comments by May 15 and rebuttals by May 29.
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