Will Politics Determine The Future Of Spot Bitcoin ETFs? Ex-SEC Official Weighs In

Bitcoin Spot ETF

Bitcoin Spot ETF

The recent enthusiasm surrounding the possibility of a Bitcoin Spot exchange-traded fund (ETF) getting the green light has taken a new turn. Speculations, assumptions, and projections have been rife in the crypto community, but insights from those closely associated with regulatory bodies often cast a revealing light on such matters.

John Reeds Stark, a former US Securities and Exchange Commission (SEC) official, is the latest to weigh in on this topic.

SEC’s Current Concerns: Manipulation And Regulatory Gaps?

Taking to his X (formerly known as Twitter) account to voice his perspective, Stark, who once led the SEC’s Office of Internet Enforcement, shared what many might perceive as a mix of caution and hope for the future of crypto regulations in the US.

According to Stark, the SEC’s underlying concerns regarding approving a Spot Bitcoin ETF are the alleged manipulation and the perceived lack of adequate regulation within the crypto ecosystem.

Stark stated that the current SEC is unlikely to give a nod to such an ETF application due to these significant reasons. In Stark’s words, the scenario surrounding crypto regulations has also started taking a partisan hue, further complicating the regulatory landscape.

Stark tweeted:

Issues surrounding crypto regulation have unfortunately become increasingly partisan at the SEC.

The Ex-SEC Official further noted that cryptocurrencies have undergone a transformative journey since their inception.

This is surprising because when I first began writing about crypto in 2017, crypto was not at all a partisan issue. For instance, back then, President Donald Trump, Secretary Hillary Clinton, and Congresswoman Maxine Waters all shared the same view about crypto i.e. that crypto was a dangerous and horrific plague.

A Glimmer Of Hope With Political Shifts?

Stark’s revelations don’t just end with the SEC’s current reservations. He further speculates on the potential for a brighter crypto regulatory landscape, contingent on the outcome of forthcoming political shifts.

Interestingly, Stark opines that a Republican presidency might pave the way for a more crypto-friendly SEC. Citing past instances, Stark reminded his followers of the SEC’s approach under its then-chair, Jay Clayton, a Republican appointee. 

Stark elaborates that if the upcoming elections see a Republican ascendancy, the newly appointed officials at the SEC could be more receptive to crypto innovations, including the approval of a Spot Bitcoin ETF.

Should the speculation about “crypto-mom” Hester Peirce potentially becoming the acting Chair of the SEC come true under a new Republican regime, Stark believes that a drastic change in the U.S. SEC’s approach to crypto could be on the horizon.

Bitcoin (BTC)’s price is moving sideways on the 4-hour chart. Source: BTC/USD on TradingView.com

Featured image from Unsplash, Chart from TradingView

Exit mobile version