Representatives Mike Flood and Wiley Nickel have penned a letter to SEC Chair Gary Gensler, urging the commission to greenlight options trading on Bitcoin exchange-traded products (ETPs). The move comes as US lawmakers seek to level the playing field for cryptocurrency funds.

In their bipartisan letter, Flood and Nickel emphasized the need for swift action, calling on the SEC to explain any disparities in treatment between options for Bitcoin futures ETFs, which are already trading, and those for spot Bitcoin ETPs.

The lawmakers underscored the significance of SEC approval for investors, highlighting the agency’s mandate to safeguard their interests.

Currently, the SEC is reviewing applications from major exchanges like the New York Stock Exchange, Nasdaq, and Cboe Global Markets, all submitted in January. Nasdaq has sought approval to list options on BlackRock’s iShares Bitcoin Trust, while Cboe plans to introduce options trading on various BTC funds. Similarly, the NYSE aims to offer options on Bitwise Bitcoin ETF, Grayscale Bitcoin Trusts, and other Bitcoin-backed trusts.

In a recent development, the SEC initiated a public consultation on a proposed rule change to permit Bitcoin options trading.

The agency aims to assess the potential impact on market stability, especially during volatile periods, and evaluate the adequacy of existing surveillance and enforcement mechanisms for Bitcoin options.

Interested parties can submit initial comments until May 15, with rebuttal comments accepted until May 29.