Is the SEC About to Pull Off a Regulatory Rug Pull?
According to pro-XRP lawyer John Deaton, there is a possibility that the Securities and Exchange Commission (SEC) might surprise everyone by denying approval for a Spot Bitcoin ETF. Deaton raised this question due to the high level of optimism in the market regarding the approval of these ETF applications. Bloomberg analysts predict a 90% chance of approval by January 10, 2024. However, Deaton believes that despite the positive signs from the SEC, there is still a slim chance that they could deny these applications, leading to what he calls a “regulatory rug pull.”
Possible Scenarios for a Regulatory Rug Pull
In response to former SEC attorney John Reed Stark’s post, Deaton discussed two possible scenarios for the SEC denying the Spot BTC ETF applications. The first scenario suggests that the SEC’s welcoming attitude may simply be a cover-your-ass effort so they can deny the applications based on regulatory non-compliance. The second scenario involves the SEC denying approval due to potential risks posed to investors. These scenarios highlight the uncertainty surrounding the SEC’s decision and its potential impact on the crypto market.
Hot Take: The Fate of Spot Bitcoin ETF Hangs in Balance
The anticipation for an SEC approval of a Spot Bitcoin ETF has created optimism in the crypto market. However, pro-XRP lawyer John Deaton raises doubts about whether the SEC will actually grant approval or pull off a “regulatory rug pull.” Despite recent positive signs from the SEC and its Chair Gary Gensler, there is still a possibility that they could deny these applications. This uncertainty leaves investors and market participants waiting anxiously for a decision that could significantly impact the future of Bitcoin ETFs and potentially shape the regulatory landscape for cryptocurrencies.
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