Bitcoin Has US Politicians Lining Up To Show Their Support

Politicians in the US have continued to make calls for regulations for cryptocurrency markets. Just yesterday, a bipartisan letter was sent by two US congressmen to the Security and Exchange Commission (SEC) demanding the approval of Spot Bitcoin Exchange Traded Funds (ETFs). The letter addressed to the Chair of the SEC, Gary Gensler, was co-written by Congressmen Todd Emmer and Darren Soto.

What Did The Letter Say?

In the letter, the Congressmen questioned the agency’s reservations about approving a Bitcoin spot ETF when it has already allowed two futures Bitcoin ETFs to start trading. 

“We question why, if you are comfortable allowing trading in an ETF based on derivatives contracts, you are not equally or more comfortable allowing trading to commence in ETFs based on spot Bitcoin. Bitcoin spot ETFs are based directly on the asset, which inherently provides more protection for investors.”

Furthermore, the letter addressed SEC concerns over possible price manipulation for Bitcoin spot EFTs. The SEC claims that Bitcoin prices can be manipulated easily by market players, hence its reluctance to approve the spot ETF, which it sees as a protective measure for investors.

However, in their letter, the congressmen argued that the price index used by the CME futures ETF was obtained from Coinbase, Kraken, and Bitstamp — all of which are spot exchanges. They alluded that 90.47% of the CME CF Bitcoin Reference Rate (BRR) is obtained from these platforms.

The letter concluded by calling on the SEC to take advantage of the growing interest in Bitcoin Spot ETFs, as shown in over $40 billion of assets under management (AUM) in the numerous investment vehicles available. Since both spot ETFs and futures ETFs carry similar risks regarding price manipulation, continued disapproval of spot ETFs would contradict the concerns outlined by the SEC.

Furthermore, the expectation that the SEC would lead the government’s charge to regulate the crypto industry seems misguided. This has led to more calls on congress to take control and act in the government’s best interest.

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Miami Mayor To Be Paid In Bitcoin

Mayor of Miami, Francis Suarez, has reiterated his willingness to receive his paycheck in Bitcoin. The mayor, who won re-election to office in recent elections, alluded to this in a tweet while mentioning the city’s director of innovation in tech, Mike Sarasti.

The tweet was in response to a question from crypto influencer Anthony Pompliano of Morgan Creek Capital Management:

Mayor Suarez has been a long-time Bitcoin supporter and has repeatedly advocated for Miami to become the center for digital finance. In October, he revealed plans to pay the cities’ employees in crypto.  A move, he says, that will allow citizens to pay for goods, services, and taxes in Bitcoin when regulatory approval arrives.

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Growing Political Interest In Crypto

It is no surprise that politicians in the US at all levels are becoming more involved in advocacy for Bitcoin adoption. This situation may lead to the enactment of more favorable laws to regulate the industry.

Earlier this year a pro-Bitcoin US Senator, Cynthia Lummis, was appointed to the US banking Committee. Many viewed the appointment as being positive news for crypto making progress in terms of adoption.

Congress has also seen more of its members openly call for more regulation from the government to help control the emerging industry. The Congressional Blockchain Caucasus and Senator Ted Cruz have all been vocal in their support for the crypto space.

Will more active participation from politicians result in favorable Bitcoin regulations? Let us know in the comments below.