Key Takeaways
- US lawmakers press SEC to approve Bitcoin options trading, citing discrimination.
- Options trading crucial for investors' protection and financial strategies.
- SEC initiates consultation on Bitcoin options' impact and market surveillance.
In a bipartisan effort, Representatives Mike Flood and Wiley Nickel urge SEC Chair Gary Gensler to approve options trading on Bitcoin exchange-traded products (ETPs), stressing the need to end discrimination against crypto funds.
Urgent appeal to the SEC
A bipartisan letter to the SEC stated:
We urge you, without delay, to approve options on spot Bitcoin ETPs or to provide an explanation for the Commission’s difference in treatment between options for Bitcoin futures ETFs — which are currently trading — and options for the spot Bitcoin ETPs.
Crucial implications for investors
Options provide investors with the right to buy or sell Bitcoin at a fixed price by a certain date, serving as essential financial tools for hedging and generating income.
Flood and Nickel emphasize the importance of SEC approval for investor protection.
