Former SEC official John Reed Stark has just lately spoken on the present developments and believes that the SEC gained’t approve a spot Bitcoin ETF anytime quickly. Nonetheless, he believes that the tides may change publish the US Presidential Election 2024.
John Reed Stark believes {that a} Republican President in 2024 would enhance the percentages of a spot Bitcoin ETF approval. The previous SEC official additionally cites an SEC feedback letter from Higher Markets which highlights the problems with the present state of spot Bitcoin ETFs. The letter explains:
“The spot bitcoin markets (1) have a historical past of artificially inflated buying and selling volumes resulting from rampant manipulation and wash buying and selling; (2) are extremely concentrated; and (3) depend on a choose group of people and entities to take care of bitcoin’s community”.
Moreover, the letter additionally provides that these attributes create vital vulnerabilities within the context of a proposed spot bitcoin-based ETP, making it prone to manipulation by malicious actors. The proposed rule alterations do little to successfully counteract these dangers. Counting on market surveillance mechanisms in different arenas to establish and deal with manipulation is inadequate, it provides.
Republican President and spot Bitcoin ETF
John Reed Stark mentions that the problems regarding crypto rules have grow to be partisan on the SEC. Curiously, he additionally notes that the SEC crackdown started underneath Republican-appointed SEC Chair Jay Clayton. He was the one who filed the case on Ripple simply days earlier than leaving workplace.
Nonetheless, Jay Clayton now believes that the SEC ought to approve spot Bitcoin ETFs and that the present regulation goes overboard with its regulatory stand.
Nonetheless, if the Republican wins the US Presidency in 2024, John Reed Stark expects two doable outcomes on this case.
- Drastically scale back crypto-enforcement endeavors, possible specializing in fraud instances and transferring away from charging registration breaches (like failure to register as an trade, broker-dealer, or clearing agency for crypto-trading platforms); and
- Present higher openness to approving a Bitcoin spot ETF and adopting different crypto-friendly regulatory measures.
Curiously, he additionally predicts a situation the place crypto mother Hester Pierce would be the SEC chair. “If @HesterPeirce turns into appearing Chair of the SEC, given her prolonged observe file of dissent and opposition to most crypto-related SEC actions, the world ought to anticipate that almost all U.S. SEC crypto-related enforcement and most crypto-related SEC disruption would grind to a screeching halt,” adds Stark.
Will the SEC Approve Any Of The Latest Bitcoin Spot ETF Functions?
Individuals typically ask for my opinion on whether or not the SEC will approve any of the current spate of bitcoin spot ETF functions, which is an fascinating and necessary query.
My take is that the present SEC will… pic.twitter.com/lPXebl03Y4
— John Reed Stark (@JohnReedStark) August 13, 2023
The offered content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.
