Lawmakers in the United States are reportedly urging the Securities and Exchange Commission (SEC) to approve options trading on Bitcoin exchange-traded products (ETPs). Representatives Mike Flood and Wiley Nickel recently sent a letter to the SEC’s chair, Gary Gensler, calling for an end to discrimination against crypto funds. The bipartisan letter asks the SEC to approve options on spot Bitcoin ETPs or provide an explanation for the discrepancy in treatment between options for Bitcoin futures ETFs and options for spot Bitcoin ETPs. Options are financial instruments that give the buyer the right, but not the obligation, to buy or sell Bitcoin at a fixed price by a certain date. Flood and Nickel argue that this approval is crucial for the protection of investors. The SEC has been delaying decisions on applications from the New York Stock Exchange, Nasdaq, and Cboe Global Markets, which were submitted in January. These applications include options trading on various Bitcoin funds. The SEC recently initiated a new consultation round on the proposed rule change to allow options trading on Bitcoin funds. They are seeking public feedback on how Bitcoin options might impact market stability, particularly in volatile conditions. The SEC is also examining whether current market surveillance and enforcement practices are sufficient for managing the complexities of Bitcoin options. Participants have until May 15 to submit initial comments and May 29 for rebuttal comments.
US legislators press Securities and Exchange Commission to authorize trading of Bitcoin options