• BlackRock has applied for a spot Bitcoin ETF, with Coinbase serving as custodian for BTC holdings.
• U.S. House Financial Services Committee Chair Patrick McHenry said he would “closely” watch how the SEC responds to the application.
• The SEC must not pick winners and losers based on inconsistent factors, according to McHenry.
BlackRock Files Application for Spot Bitcoin ETF
BlackRock, one of the world’s largest investment firms, has filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin Exchange Traded Fund (ETF). Coinbase is set to serve as custodian for BlackRock’s holdings of BTC in this ETF application.
McHenry Watches Closely How SEC Responds
U.S House Financial Services Committee Chair Patrick McHenry said he would “closely” watch how the SEC responds to BlackRock’s application for a spot Bitcoin ETF in a June 16 tweet. McHenry noted that while the decision now rests with SEC Chair Gary Gensler, the financial regulator “must not pick winners and losers based on inconsistent factors.“
Pressure on SEC to Approve BlackRock’s Application
Given that BlackRock is one of the biggest investment firms in the world and its influence, several crypto community members believe there will be significant pressure on the SEC to approve its application if it approves any at all.
SEC Under Congressional Scrutiny
The lawmaker’s comment suggests that if the SEC approves BlackRock’s application, it would have to explain why it rejected all previous applications from other crypto firms before hand. This puts further scrutiny on the SEC as they make their decision regarding this new spot Bitcoin ETF application from Blackrock.
Previous Applications Rejected By The SEC
In addition to this latest news about Blackrock, Binance US reportedly cut 50 staff following charges from the SEC and Do Kwon was detained by Montenegrin court after his arrest was extended six months by prosecutors who withdrew 5 charges against Sam Bankman-Fried in order to ensure their trial proceeds on schedule