Ex-SEC Chief: No Approval For Spot Bitcoin ETF
Former SEC chief, John Reed Stark, has provided insights into the potential approval of recent applications for Bitcoin spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Stark’s remarks shed light on the intricate factors shaping this decision, amplifying the significance of the crypto regulatory landscape.
Will the SEC Approve Any Of The Recent Bitcoin Spot ETF Applications?
People often ask for my opinion on whether the SEC will approve any of the recent spate of bitcoin spot ETF applications, which is an interesting and important question.
My take is that the current SEC will… pic.twitter.com/lPXebl03Y4
— John Reed Stark (@JohnReedStark) August 13, 2023
SEC Hesitates on Bitcoin ETF
Taking to Twitter, Stark referred to the analysis conducted by experts at BetterMarkets, who articulated their stance in SEC Comment Letters on August 8, 2023. This analysis pertains to proposed rule changes for ETFs based on spot Bitcoin trading. Stark’s assessment hints at the SEC’s hesitancy to greenlight a Bitcoin spot ETF application, attributing this caution to a multitude of compelling reasons expounded upon in BetterMarkets’ analysis. What stands out is Stark’s anticipation of a substantial regulatory realignment in the cryptocurrency domain post the upcoming election, inferring that the political landscape may have bearing on this decision.
Notably, Stark recalled a time when prominent figures from diverse political affiliations, including former President Donald Trump, former Secretary Hillary Clinton, and Congresswoman Maxine Waters, collectively voiced apprehensions about cryptocurrencies, deeming them potential security threats.
SEC’s Historical Crypto Scrutiny
Drawing attention to historical context, Stark underlined that the SEC’s initial scrutiny of the cryptocurrency realm commenced during the tenure of Jay Clayton, a Republican-appointed SEC Chair. This historical context could influence the current stance of the SEC, reflecting its cautious approach towards cryptocurrencies.
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Stark’s remarks arrive on the heels of the U.S. SEC’s recent decision to extend the review period for Ark Invest’s application for a Bitcoin spot ETF. This extension signifies the regulatory body’s meticulous evaluation of the intricacies surrounding such ETFs. Stark’s insights underscore the intersection of political dynamics and regulatory decisions. The confluence of these factors not only shapes the immediate outcome but also potentially charts the course for how cryptocurrencies are perceived and regulated in the years to come.
