- Fidelity advocates for SEC to certify its Bitcoin exchange-traded fund (EFT).
- According to Fidelity, Bitcoin markets have already matured according to the SEC’s own rules.
- Despite its legal battle with the SEC, Fidelity intends to hire 70% more crypto-asset employees.
Fidelity Digital Assets President, Tom Jessop had a private meeting on Sept. 8 with six of the firm’s executives and some SEC officials. In the meeting, the finance executives pointed out some reasons why the SEC should endorse ETPs. More so, these include the high demand for digital assets and other alike products. They also stated the demand for Bitcoin adoption as one of the bases for seeking approval.
The Fidelity officials cited Canada, Sweden, Germany, and Switzerland as the countries granted the right to Bitcoin exchange-traded products (ETPs).
Gary Gensler, chairman of the SEC, previously suggested reviewing only BTC products. Fidelity announced that it was not necessary. Furthermore, Fidelity pointed out that the 1933 law banning stock exchanges from listing the products, or listing only futures are outdated based on the maturity of the market.
Additionally, Fidelity implied that the market has already reached “significant size” and has deep liquidity as defined by the SEC. Fidelity feels the 1933 laws are too rigid because the markets are now more plain and stable. The Securities Act enacted 1933 law following the stock market crash of 1929.
Fidelity applied for the Wise Origin Bitcoin Trust, a Bitcoin exchange-traded product, in March 2021. More than 20 other corporations also filed similar applications, but the regulator has yet to act.
The SEC is moving at its own pace. Although, they keep receiving several petitions, the SEC seems unmoved.
Despite its legislative struggle with SEC, Fidelity plans to increase its crypto-asset employee numbers by 70%.