Former SEC chief John Reed Stark suggests that the SEC might not be eager to allow Bitcoin spot ETFs. He points out that after the upcoming election, there could be a big change in how cryptocurrencies are regulated.
In the changing world of cryptocurrencies, knowing what regulatory bodies think is really important for investors and organizations.
A person who used to be important at the SEC, John Reed Stark, talked about how the SEC might see the new requests for Bitcoin spot ETFs.
Sonntag ist Stichtag, bis dahin muss die SEC eine Entscheidung über den #Bitcoin Spot ETF Antrag von ARKInvest treffen.
Die SEC kann ihre Entscheidung entweder verschieben, den ETF genehmigen oder ihn ablehnen.
Es ist relativ unwahrscheinlich, dass die Entscheidung am… pic.twitter.com/cQArHkpaTp
— RobynHD (@TheRobynHD) August 11, 2023
Experts at BetterMarkets shared smart thoughts, and Stark talked about it on Twitter. He explained how the SEC sees Bitcoin ETFs now. They looked at letters from August 8, 2023, that talked about changing rules for exchange-traded products connected to spot bitcoin.
Revealing the Influencing Factors
Stark talked about some good reasons why the SEC might say no to a Bitcoin spot ETF. One big reason is that people could cheat the market. BetterMarkets also talked about this, saying the spot bitcoin markets could be easily tricked.
They pointed out problems like fake trading numbers because of cheating, most of the market being controlled by a few people, and the network depending too much on certain people and groups.
They say because of these things, a spot bitcoin-based investment is easy for bad people to control. So, they think products like this with big problems and not following the main rules should be rejected.
Stark also talked about what could happen after the election, which is interesting. In the past, important people like President Donald Trump, Secretary Hillary Clinton, and Congresswoman Maxine Waters didn’t really like cryptocurrencies. They worried that crypto could be bad.
But things might change soon in how crypto is regulated. Stark thinks the next election could make a big difference in how the SEC sees cryptocurrencies. If a Republican wins, the SEC might start to be more open to cryptocurrencies.
This kind of change wouldn’t be new. The SEC’s ideas about crypto have changed before. For example, Jay Clayton, a Republican leader at the SEC before, didn’t like cryptocurrencies. But if a Republican wins the election in 2024, things could become friendlier for cryptocurrencies. This might mean they’re more likely to say yes to a Bitcoin spot ETF.
Stark’s tweet shows how the crypto world is always changing and how things like politics can affect the rules. It reminds us that in the exciting world of cryptocurrencies, knowing what’s happening is really important.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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