John Deaton’s Reaction to John Reed Stark’s Remarks
There has been a lot of speculation around the possible approval of a spot Bitcoin ETF, with experts predicting that it may launch between December 7-10. However, former SEC official John Reed Stark has raised some concerns.
Legal expert Joe Carlasare noticed the SEC’s claim on language suggesting Bitcoin as a potential security in the BlackRock / iShares S-1 filing. He questions why the SEC would demand such language if they were likely to decline the application.
If Bitcoin is classified as a security, it could face challenges in trading on exchanges and may attract regulatory scrutiny, potentially impacting its current momentum.
John Reed Stark’s Plausible Scenarios
John Reed Stark acknowledges the seemingly random 90% likelihood of SEC approval for a Bitcoin spot ETF. He believes there are two possible scenarios. Firstly, he suggests that the SEC’s CYA efforts reveal serious concerns about the impact of the ETF on investors. Secondly, he highlights SEC Chair Gensler’s unconventional approach and lack of concern for differing opinions within the SEC.
In response to Stark’s analysis, John Deaton expresses concern about a potential hurdle ahead. He believes that while the Bitcoin price is currently rising due to the high possibility of spot Bitcoin approval, there could be hidden consequences. Deaton refers to this as a regulatory “rug pull” and points out Gensler’s strict nature when dealing with Bitcoin.
The Approval Decision for Spot Bitcoin ETFs
These remarks come at a time when the market is bullish and the price of Bitcoin has exceeded $44K. However, the decision to approve spot Bitcoin ETFs is still pending.
Bloomberg Analyst James Seyffart also shares Joe’s post and suggests another possibility. Seyffart predicts that there is a chance of spot Bitcoin approval around December 10 and that ARK Invest’s Spot Bitcoin ETF will also be approved on January 10 next year.
If the spot Bitcoin ETF receives approval, it could push the price of Bitcoin beyond $50K quickly. However, if the SEC disapproves all filings that classify Bitcoin as a security, it may be difficult for the BTC price to regain its momentum.
Hot Take: Possible Regulatory Rug Pull Ahead of Spot BTC ETF Approval
There is growing anticipation and excitement in the crypto market surrounding the potential approval of a spot Bitcoin ETF. Experts have made predictions, and the price of Bitcoin has already surged above $44K. However, former SEC official John Reed Stark has raised concerns about the SEC’s language suggesting Bitcoin as a potential security. This has led to discussions about the implications for trading and regulatory scrutiny.
John Deaton, an XRP lawyer, reacted to Stark’s remarks and expressed his fears about a possible hurdle ahead. He believes that while the market is currently bullish due to the high likelihood of spot Bitcoin approval, there could be hidden consequences, referring to it as a regulatory “rug pull.” The decision on spot Bitcoin ETFs is still pending, but if approved, it could propel the price of Bitcoin even higher. However, if disapproved, it may be challenging for Bitcoin to regain its momentum.
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