- John Reeds Stark says the SEC will not approve a Bitcoin Spot ETF.
- The former SEC attorney says the regulator is concerned about manipulation and lack of regulation in the crypto ecosystem.
- The official added that it might take a Republican government for more crypto-friendly policies to come up.
John Reeds Stark, an ex-official of the U.S Securities and Exchange Commission, says the SEC will not approve a Bitcoin Spot exchange-traded fund (ETF). Stark, who formerly headed the SEC’s Office of Internet Enforcement, raised these concerns in a post on Sunday.
“My take is that the current SEC will not approve a bitcoin spot ETF application for a range of compelling reasons,” Stark said. He added, “Under current leadership, the SEC is unlikely to approve a Bitcoin Spot ETF. This is due to concerns about manipulation and a lack of regulation. However, crypto regulation is increasingly partisan.”
According to the attorney, the SEC might become more crypto-friendly should a Republican President emerge in the forthcoming elections. Otherwise, the crypto community might have to wait for a change of heart, he said in the post.
Crypto regulation has entered the mix of discussions leading to the next election. While a mix of Democratic and Republican candidates have expressed their support for friendlier crypto laws, the Biden administration has become less popular in the crypto community due to its stifling regulations.
The SEC under Gary Gensler, has adopted strict crypto regulations and dragged notable crypto entities to courts over compliance with existing laws. Despite this, Gensler’s administration has also greenlighted several Bitcoin ETF applications from traditional and crypto companies. Recently, the SEC extended its review of the Ark21Shares BTF application.
Many in the crypto community and traditional markets believe a spot-Bitcoin ETF would favor the crypto ecosystem highly. They argue that the ETF would make investing in Bitcoin more accessible to the everyday user. Likewise, it would also help transition many people into the crypto ecosystem.
However exciting that sounds, regulators don’t share the same optimism. Since the crypto winter that wiped out trillions in user funds, regulators have kept a keener eye on crypto assets and entities. That has seen the introduction of new regulations for entities in the crypto space.
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