The Unlikelihood of SEC Approving Bitcoin Spot ETF Applications
Former SEC official John Reed Stark explains why the current SEC is unlikely to grant approval for a Bitcoin spot ETF application. The regulatory landscape may change after a future election, potentially impacting crypto regulations.
Main Breakdowns:
– Crypto regulations have become more partisan within the SEC, despite its bipartisan nature in the past.
– In 2017, notable figures recognized the risks of crypto assets, leading to the SEC’s crackdown.
– The 2024 U.S. Presidential election could bring significant changes to the regulatory environment.
– If a Republican candidate wins, the SEC may decrease its crypto-enforcement efforts and be more receptive to approving a Bitcoin spot ETF.
– Hester Peirce, a senior Republican Commissioner, could become the acting Chair of the SEC, resulting in potential disruption to crypto-related SEC actions.
Hot Take:
The current SEC is unlikely to approve Bitcoin spot ETF applications. However, the regulatory landscape could shift after a future election, potentially leading to a Republican-led SEC that is more crypto-friendly. If Hester Peirce becomes the acting Chair, we may see a halt in crypto-related SEC enforcement and disruption.
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