The recent enthusiasm surrounding the possibility of a Bitcoin Spot exchange-traded fund (ETF) getting the green light has taken a new turn. Speculations, assumptions, and projections have been rife in the crypto community, but insights from those closely associated with regulatory bodies often cast a revealing light on such matters.
John Reeds Stark, a former US Securities and Exchange Commission (SEC) official, is the latest to weigh in on this topic.
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’s Current Concerns: Manipulation And Regulatory Gaps?
Taking to his X (formerly known as Twitter) account to voice his perspective, Stark, who once led the SEC’s Office of Internet Enforcement, shared what many might perceive as a mix of caution and hope for the future of crypto regulations in the US.
According to Stark, the SEC’s underlying concerns regarding approving a Spot Bitcoin ETF are the alleged manipulation and the perceived lack of adequate regulation within the crypto ecosystem.
Stark stated that the current SEC is unlikely to give a nod to such an ETF application due to these significant reasons. In Stark’s words, the scenario surrounding crypto regulations has also started taking a partisan hue, further complicating the regulatory landscape.
Issues surrounding crypto regulation have unfortunately become increasingly partisan at the SEC.
The Ex-SEC Official further noted that cryptocurrencies have undergone a transformative journey since their inception.
This is surprising because when I first began writing about crypto in 2017, crypto was not at all a partisan issue. For instance, back then, President Donald Trump, Secretary Hillary Clinton, and Congresswoman Maxine Waters all shared the same view about crypto i.e. that crypto was a dangerous and horrific plague.
A Glimmer Of Hope With Political Shifts?
Stark’s revelations don’t just end with the SEC’s current reservations. He further speculates on the potential for a brighter crypto regulatory landscape, contingent on the outcome of forthcoming political shifts.
Interestingly, Stark opines that a Republican presidency might pave the way for a more crypto-friendly SEC. Citing past instances, Stark reminded his followers of the SEC’s approach under its then-chair, Jay Clayton, a Republican appointee.
Stark elaborates that if the upcoming elections see a Republican ascendancy, the newly appointed officials at the SEC could be more receptive to crypto innovations, including the approval of a Spot Bitcoin ETF.
Should the speculation about “crypto-mom” Hester Peirce potentially becoming the acting Chair of the SEC come true under a new Republican regime, Stark believes that a drastic change in the U.S. SEC’s approach to crypto could be on the horizon.
Featured image from Unsplash, Chart from TradingView