According to John Reed Stark, a former attorney for the Securities and Exchange Commission (SEC), the Securities and Exchange Commission (SEC) will not change its position regarding the authorization of Bitcoin spot market exchange-traded funds (ETFs).
Stark, who had previously managed the Office of Internet Enforcement at the SEC, emphasized that the current administration at the SEC has solid reasons for rejecting applications for ETFs linked to Bitcoin’s spot markets. Stark was previously the manager of the Office of Internet Enforcement at the SEC.
He made reference to a letter from Better Markets, a nonprofit organization with its headquarters in Washington, that outlines the strategy that the SEC intends to use in order to regulate the cryptocurrency market. Better Markets asserts that the upkeep of the Bitcoin market’s network is dependent on a small group, which could make the market susceptible to manipulation.
Since 2013, the Securities and Exchange Commission has consistently rejected Bitcoin ETF proposals due to these particular concerns. Nevertheless, it has given the green light for ETFs that are associated with Bitcoin futures markets.
In addition, Stark discussed his thoughts on how the SEC might approach the regulation of cryptocurrencies after the presidential election of 2024. He hypothesized that if a Republican candidate were to win the election and take the helm of the administration, there might be a disposition that is more favorable toward cryptocurrencies.
There is a possibility that this will result in an easier process for the approval of spot ETFs. In addition, he made the suggestion that Republican leadership within the SEC could lead to a reduction in the number of enforcement actions taken by the agency.