The SEC Unlikely to Approve Bitcoin Spot ETF, Says Former SEC Attorney
According to former SEC attorney John Reed Stark, the Securities and Exchange Commission (SEC) is unlikely to approve a Bitcoin spot exchange-traded fund (ETF) application despite the filings from major Wall Street firms. Stark cited a comment letter from nonprofit Better Markets, which argued against a spot ETF due to concerns about market manipulation and concentration in Bitcoin markets. The SEC has consistently rejected Bitcoin ETF applications since 2013 but has allowed ETFs in Bitcoin futures markets. Stark also predicted that if a Republican candidate wins the upcoming 2024 presidential election, the SEC’s crypto regulations may become more favorable and enforcement actions may decrease.
Key Points:
- The SEC is unlikely to approve a Bitcoin spot ETF application due to concerns about market manipulation and concentration in Bitcoin markets.
- Better Markets supports the SEC’s stance against a spot ETF and has urged the agency to reject proposed rule changes.
- The SEC has allowed ETFs in Bitcoin futures markets but has consistently rejected spot ETF applications since 2013.
- If a Republican candidate wins the 2024 presidential election, the SEC’s crypto regulations may become more favorable and enforcement actions may decrease.
- John Reed Stark has been critical of the crypto industry in the past and has engaged in debates with industry players.
Hot Take:
The SEC’s opposition to a Bitcoin spot ETF is consistent with their previous stance on the matter. However, with the growing interest and applications from Wall Street giants, it will be interesting to see if the SEC’s position changes in the future. The predictions made by John Reed Stark regarding the impact of the 2024 presidential election on crypto regulations highlight the potential influence of politics on the industry. Overall, regulatory developments and debates surrounding cryptocurrencies continue to shape the future of the market.
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