The Securities and Exchange Commission (SEC) is not going to amend its position against allowing exchange-traded funds (ETFs) in Bitcoin spot markets, claims former SEC attorney John Reed Stark.
Stark, who formerly oversaw the SEC’s Office of Internet Enforcement, stated on X that the current SEC administration has strong justifications for turning down applications for Bitcoin spot ETFs.
He cited a letter for the SEC’s approach to regulating the cryptocurrency market from Better Markets, a nonprofit organization with headquarters in Washington. According to Better Markets, the network maintenance of the Bitcoin market is dependent on a small group, and is subject to manipulation.
The SEC has consistently denied Bitcoin ETF applications since 2013 based on these concerns, but it has permitted ETFs in Bitcoin futures markets.
In addition, Stark made predictions on how the SEC will regulate cryptocurrencies after the 2024 presidential election. He predicted that a GOP-led administration may take a more pro-crypto posture if a Republican candidate wins, thereby streamlining the approval process for spot ETFs. He added that the SEC’s enforcement activities might lessen under Republican control of the agency’s leadership.
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