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Former SEC official John Reed Stark has just lately spoken on the present developments and believes that the SEC received’t approve a spot Bitcoin ETF anytime quickly. However, he believes that the tides might change submit the US Presidential Election 2024.

John Reed Stark believes {that a} Republican President in 2024 would enhance the chances of a spot Bitcoin ETF approval. The former SEC official additionally cites an SEC feedback letter from Better Markets which highlights the problems with the present state of spot Bitcoin ETFs. The letter explains:

“The spot bitcoin markets (1) have a history of artificially inflated trading volumes due to rampant manipulation and wash trading; (2) are highly concentrated; and (3) rely on a select group of individuals and entities to maintain bitcoin’s network”.

Furthermore, the letter additionally provides that these attributes create important vulnerabilities in the context of a proposed spot bitcoin-based ETP, making it vulnerable to manipulation by malicious actors. The proposed rule alterations do little to successfully counteract these dangers. Relying 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 laws have change into partisan on the SEC. Interestingly, he additionally notes that the SEC crackdown started beneath Republican-appointed SEC Chair Jay Clayton. He was the one who filed the case on Ripple simply days earlier than leaving workplace.

However, Jay Clayton now believes that the SEC ought to approve spot Bitcoin ETFs and that the present regulation goes overboard with its regulatory stand.

However, if the Republican wins the US Presidency in 2024, John Reed Stark expects two attainable outcomes in this case.

1. Drastically cut back crypto-enforcement endeavors, seemingly specializing in fraud instances and shifting away from charging registration breaches (like failure to register as an change, broker-dealer, or clearing agency for crypto-trading platforms); and
2. Show better openness to approving a Bitcoin spot ETF and adopting different crypto-friendly regulatory measures.

Interestingly, he additionally predicts a state of affairs the place crypto mother Hester Pierce would be the SEC chair. “If @HesterPeirce becomes acting Chair of the SEC, given her lengthy track record of dissent and opposition to most crypto-related SEC actions, the world should expect that most 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 Recent Bitcoin Spot ETF Applications?

People usually ask for my opinion on whether or not the SEC will approve any of the current spate of bitcoin spot ETF purposes, which is an attention-grabbing and necessary query.

My take is that the present SEC will… pic.twitter.com/lPXebl03Y4

— John Reed Stark (@JohnReedStark) August 13, 2023

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired information. In free time he reads thriller fictions novels and typically discover his culinary expertise.

The offered content material could embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty on your private monetary loss.