Will the SEC approve (or not) Bitcoin spot ETF applications? For John Reed Stark, a former executive of this regulatory institutionthe chances to see Gary Gensler give his approval for the deployment of these financial products are minimal. Better waiting for Republicans to take over the country to hope for a change. Explanations!
John Stark Not Confident About the Future of Bitcoin Spot ETFs
Remember John Reed Stark, the man who urged enthusiasts to quit crypto exchanges now? This kind of advice comes froma consultant who closely follows the evolution of the market cryptocurrencies.
Recently he spoke on theFuture of Spot BTC ETFs.
” Former SEC official John Reed Stark said the current SEC will not approve the spot Bitcoin ETF.
It’s time to fire President Gary Gensler. »
A little tour on the official account of the boss of John Reed Stark Consulting LLC allowed us that he laid a long article on this subject yesterday.
” Will the SEC approve any of the recent applications to create Spot Bitcoin ETFs? he wondered.
Moreover, he is often asked to answer this question.
Excerpt from answers by John Reed Stark:
” I think that the current SEC will NOT approve an application for a bicoin spot ETF for a whole series of compelling reasonswhich the independent and objective experts at Better Markets present brilliantly (and much better than I could ever do) in their August 8, 2023 SEC comment letters in response to multiple proposed rule changes filed by national stock exchanges. to list and trade shares in spot bitcoin-based exchange-traded products (see links and excerpt below). »
Better Markets supports the SEC
Better Markets, via its legal advisor Scott Farnin, has indeed published a letter justifying the rejection of Bitcoin ETF deposits by the SEC on August 8.
In it we learned that BTC ETFs represent risks since they ” expose investors to fraud, manipulation and other harm “.
” The cryptocurrency industry’s track record is clear when it comes to consumers, investors, and financial stability. The industry has suffered $2 trillion in lossesmultiple enforcement actions, bankruptcy and criminal lawsuits, as well as dozens of trials for lying, cheating and theft. Meanwhile, the main beneficiaries of the cryptocurrency craze are the criminals who use them to facilitate ransomware, money laundering and illegal behavior of all kinds. It is in this context that the SEC must assess the latest wave of Bitcoin ETF filings this month “, can we read on the site of Better Markets.
Mr. Farnin went on to recall that it’s been several years since the SEC rejected Bitcoin ETF applications. Why would she change her mind? While right now, rug pulls, crypto scams, fraudulent and manipulative actions are raging?
Besides, ” bitcoin spot markets (1) have a history of artificially inflated trading volumes due to widespread manipulation and wash trading; (2) are highly concentrated; and (3) depend on a select group of individuals and entities to maintain the bitcoin network “, he argues.
Gensler’s SEC Biased With Cryptocurrencies?
The SEC whose boss was criticized by Senator Cynthia Lummis in her amicus curiae brief filing in favor of Coinbase would lack objectivity in the regulation of cryptocurrencies.
John Reed Stark also spoke of an SEC very aggressive to these assets since the John Clayton era.
In his view, a Republican in the White House will appoint Hester Pierce as the new boss of this institution. This will certainly favor Spot Bitcoin ETFs and looser industry regulation.
Note, however, that apart from Donald Trump, currently in possession of several hundred thousand dollars in Ethereum, the Democratic candidate John F. Kennedy Jr. is also crypto-enthusiastic.
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