- SEC won’t relent on spot Bitcoin ETF.
- The former chief reveals the reason why.
- Things might turn around in 2024.
The former Securities and Exchange Commission (SEC) chief 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?
While taking a jab on the commission, 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.
According to Stark, 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.”
Following this, Stark believes that the vicious crypto-related hunt down by the SEC would culminate in a screeching halt, allowing the commission to turn around and focus on more crypto-friendly regulatory actions.
Stark also notes that a Republican chair would likely decrease the SEC’s focus on crypto enforcement and pursue mostly fraud cases. In his view, charges on pure registration violations, such as failure of a crypto trading platform to register as an exchange under the SEC, would be a thing of the past.
SEC vs. Crypto
The SEC has been at loggerheads with the crypto industry umpteen times and has been seen to step up efforts toward enforcement recently. Last week, Bittrex crypto exchange settled $24 million with the commission following the April lawsuit, where the firm was charged with violating the Securities Exchange Act of 1934.
Within the same week, on August 9, 2023, the SEC filed a notice of motion seeking to appeal against the XRP crypto case, even though the ruling was seen as a blow to the commission.
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