• Ex-SEC Chief John Reed Stark believes that the SEC is unlikely to approve a spot Bitcoin ETF application.
• He suggests that if Republicans win the 2024 presidential elections, crypto friendly regulation may be on its way with Hester Peirce as a potential chair.
• The SEC has recently stepped up efforts in its hunt for crypto enforcement, leading to lawsuits and settlements.
Ex-SEC Chief Unlikely to Approve Spot Bitcoin ETF
The former chief of the Securities and Exchange Commission (SEC), John Reed Stark, has expressed concerns that the commission is unlikely to approve a Bitcoin spot ETF application. Stark took to X (Twitter), citing a “range of compelling reasons” why the SEC will be hesitant to formally recognize spot Bitcoin ETF , especially under the current government regime.
Hope in 2024?
Stark also opined that the likelihood of the SEC adopting a more receptive approach toward crypto enforcement is pegged on whether the Republicans win the 2024 presidential elections. Having a Republican president will likely lead to the resignation of current SEC chair Gary Gensler and pave the way for Hester Peirce, whom the industry heralds as a “Crypto Mom”. According to Stark, this would reduce focus on pure registration violations and instead pursue mostly fraud cases.
SEC’s Recent Crypto Enforcement Efforts
The SEC has been at loggerheads with the crypto industry umpteen times and has been seen stepping up efforts towards enforcement recently. Last week, Bittrex crypto exchange settled $24 million with the commission following an April lawsuit where they were charged with violating Securities Exchange Act of 1934. Within that same week, on August 9th 2023, notice was filed by motion seeking appeal against XRP crypto case ruling which was seen as blow to Ripple Labs Incorporated and two executives associated with them.
What Now?
People often ask for my opinion on whether or not any recent applications regarding Bitcoin spot ETFs will be approved by SEC – which is an interesting yet important question according to Starks himself; making it clear that these decisions are very much dependent upon who wins in 2024 Presidential Elections – hinting at possibilities only if Republications come into power then maybe we could expect more favorable regulations towards cryptos from them .
Conclusion
In conclusion, John Reed Stark believes that if republicans come into power in 2024 then there might be hope for cryptos from this new era but till then it remains uncertain what stance SEC will take when it comes approval of Bitcoin Spot ETF applications
