Spot Bitcoin ETF to Come After Republican Presidency in 2024

Former SEC official John Reed Stark has not too long ago spoken on the present developments and believes that the SEC gained’t approve a spot Bitcoin ETF anytime quickly. However, he believes that the tides may change put up the US Presidential Election 2024.

John Reed Stark believes {that a} Republican President in 2024 would enhance the chances of a spot Bitcoin ETF approval. The former SEC official additionally cites an SEC feedback letter from Better Markets which highlights the problems with the present state of spot Bitcoin ETFs. The letter explains:

“The spot bitcoin markets (1) have a history of artificially inflated trading volumes due to rampant manipulation and wash trading; (2) are highly concentrated; and (3) rely on a select group of individuals and entities to maintain bitcoin’s network”.

Furthermore, the letter additionally provides that these attributes create vital vulnerabilities in the context of a proposed spot bitcoin-based ETP, making it inclined to manipulation by malicious actors. The proposed rule alterations do little to successfully counteract these dangers. Relying on market surveillance mechanisms in different arenas to determine and handle manipulation is inadequate, it provides.

Republican President and spot Bitcoin ETF

John Reed Stark mentions that the problems regarding crypto rules have turn out to be partisan on the SEC. Interestingly, he additionally notes that the SEC crackdown started underneath Republican-appointed SEC Chair Jay Clayton. He was the one who filed the case on Ripple simply days earlier than leaving workplace.

However, Jay Clayton now believes that the SEC ought to approve spot Bitcoin ETFs and that the present regulation goes overboard with its regulatory stand.

However, if the Republican wins the US Presidency in 2024, John Reed Stark expects two potential outcomes in this case.

1. Drastically scale back crypto-enforcement endeavors, doubtless specializing in fraud circumstances and shifting away from charging registration breaches (like failure to register as an alternate, broker-dealer, or clearing agency for crypto-trading platforms); and
2. Show higher openness to approving a Bitcoin spot ETF and adopting different crypto-friendly regulatory measures.

Interestingly, he additionally predicts a situation the place crypto mother Hester Pierce would be the SEC chair. “If @HesterPeirce becomes acting Chair of the SEC, given her lengthy track record of dissent and opposition to most crypto-related SEC actions, the world should expect that most U.S. SEC crypto-related enforcement and most crypto-related SEC disruption would grind to a screeching halt,” adds Stark.

Will the SEC Approve Any Of The Recent Bitcoin Spot ETF Applications?

People typically ask for my opinion on whether or not the SEC will approve any of the current spate of bitcoin spot ETF purposes, which is an fascinating and necessary query.

My take is that the present SEC will… pic.twitter.com/lPXebl03Y4

— John Reed Stark (@JohnReedStark) August 13, 2023

Bhushan is a FinTech fanatic and holds a very good aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in the direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary abilities.

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