Former SEC Office of Internet Enforcement Chief John Reed Stark has expressed his conviction that the current U.S. The Securities and Exchange Commission (SEC) has refused to approve a spot Bitcoin exchange-traded fund (ETF). Stark stated this perspective on X (previously Twitter), underlying several major aspects that lead to this stance.
Possible Changes Under a Republican Administration in 2024
According to Stark, a shift in the political scene might impact the SEC’s stance on cryptocurrencies. He hypothesized that if a Republican candidate wins the presidency in the impending 2024 elections, the SEC’s crypto-enforcement activities may be scaled back. In such a case, Stark believes the regulatory body may be more inclined to authorize a Bitcoin spot ETF and enact other crypto-friendly laws. Furthermore, Stark speculated on probable personnel changes within the SEC, such as the departure of current SEC chair Gary Gensler, which might lead to Hester Peirce taking over as interim chair.
The SEC’s vigilance in regulating cryptocurrency
The SEC has recently expanded its attention and enforcement efforts in the bitcoin market. Bittrex, a cryptocurrency exchange, reached an agreement with the SEC last week, agreeing to pay a $24 million punishment. The allegations come from Bittrex’s April operation as an unlicensed exchange. Furthermore, the SEC’s efforts included a letter filed in the Southern District of New York asking authorization for an interlocutory appeal in the Ripple Labs case. This legal action was taken in reaction to the summary judgment ruling, which was seen as a partial defeat for the SEC.
Long-running Conflict Over Spot Bitcoin ETF Approval
Despite repeated attempts over the years, the SEC has failed to provide clearance for a spot Bitcoin ETF, adding to continuous arguments and disputes within the crypto community.
