The SEC has rejected dozens of requests from financial groups to sanction a Bitcoin Spot ETF. This has led Forbes to predict the regulation of a spot Bitcoin ETF may be contingent on the passage of the Responsible Financial Innovation Act (RFIA) by Wyoming Senator Cynthia Lummis, which seeks to clarify what digital currencies are (under US law), how they can be classified (commodities, ancillary assets, and securities) and how tax laws apply to them. Furthermore, the bill aims to establish the bodies in charge of regulating specific digital assets, as well as how anti-money laundering regulations may be applied.
Grayscale Investments (“GBTC”) has pushed back on the legal propriety of these decisions. Saying they mount to arbitrary, capricious and discriminatory actions. "The Administrative Procedure Act and Exchange Act require rules and regulations to be applied without favoritism for one type of product or another," said Grayscale Chief Legal Officer Craig Salm.