SEC Unlikely to Approve Spot Bitcoin ETF: Ex-SEC Chief Reveals Why
• Former SEC Chief John Reed Stark believes the current government regime is unlikely to approve a spot Bitcoin ETF.
• Stark suggests the regulatory approach of the SEC could change if Republicans win in 2024, potentially paving the way for Hester Peirce as “Crypto Mom” and reducing enforcement on crypto-related activities.
• The SEC recently settled a lawsuit with crypto exchange Bittrex and filed an appeal in the XRP case last week.
Former SEC Chief Expresses Concerns Over Spot Bitcoin ETF
Former Securities and Exchange Commission (SEC) chief John Reed Stark has expressed concerns that the commission is unlikely to approve a Bitcoin spot ETF application due to a “range of compelling reasons” under the current government regime.
Hope For A Change In 2024?
Stark believes that having a Republican president in 2024 could lead to the resignation of current SEC chair Gary Gensler and pave the way for Hester Peirce, whom many in the industry refer to as a “Crypto Mom”. He thinks this would result in a halt of crypto-related enforcement from the SEC and instead focus on fraud cases only.
The SEC vs Crypto
The SEC has had several conflicts with crypto firms, leading to increased enforcement efforts recently. Last week, Bittrex settled $24 million withthe commission after being charged with violating securities laws, while also filing an appeal against XRP case ruling which was seen as unfavourable for cryptocurrency holders.
Will The Spot Bitcoin ETF Application Be Approved?
When asked his opinion on whether any of recent applications for spot Bitcoin ETFs will be approved bythe commission, Stark believes that it is unlikely given present conditions but hopes may change if Republicans win elections in 2024.