Bitcoin ETF Approval Dependent on Specific Event, States Former SEC Official
A potential future development could lead to the probable approval of a spot-based Bitcoin (BTC) exchange-traded fund (ETF), as suggested by a former high-ranking official at the U.S. Securities and Exchange Commission (SEC).
John Reed Stark, who established and served as the chief of the SEC’s Office of Internet Enforcement for 11 years, asserts that cryptocurrency has transformed into a bipartisan political matter within the United States.
Stark holds the viewpoint that Republicans, on the whole, exhibit more favorable sentiments toward cryptocurrency compared to Democrats.
According to his analysis, if a Republican candidate secures the presidency in November 2024, the SEC is inclined to grant approval for a spot-based Bitcoin ETF.
“Given the growing partisan divisions surrounding cryptocurrency, particularly within the SEC, it is my perspective that in the event a Republican assumes the role of U.S. President in 2024, the appointed Republicans within the SEC will probably:
1) Markedly reduce crypto-related enforcement actions, likely focusing predominantly on fraud cases, and shifting attention away from prosecuting mere registration infringements (like instances where a crypto trading platform fails to register as an exchange, broker-dealer, or clearing firm); and
2) Exhibit a much higher likelihood of endorsing a Bitcoin spot ETF, along with potentially undertaking other substantial pro-crypto regulatory measures.”
Stark anticipates that a Republican victory in the presidential race would lead to an evenly divided SEC membership between the two major parties. He also anticipates the possibility of pro-crypto SEC Commissioner Hester Peirce assuming the role of acting SEC Chair.
“In the usual course of events following a presidential election, the incumbent SEC Chair typically steps down, and the confirmation and appointment of a new SEC Chair rarely occur until at least three to four months after Inauguration Day.
Consequently, if a Republican secures the presidency, the current Chair, Gary Gensler, would probably resign, and the senior SEC Commissioner from the Republican camp (potentially the renowned ‘crypto-mom’ Hester Peirce in this scenario) might step in as the acting Chair.”
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
