In the ever-evolving world of cryptocurrency, the consideration of a spot Bitcoin-backed exchange-traded fund (ETF) in the US marketplace has been a topic of keen interest. The appeal of such a financial instrument cannot be denied, especially as Bitcoin becomes more mainstream. However, given recent statements by former SEC official, John Reed Stark, it appears this prospective ETF may not materialize this year.
Stark’s recent comments on a popular social media platform suggested that any tangible change, specifically concerning the approval of a spot ETF revolving around Bitcoin, is unlikely to occur in 2023. The reasoning? Multiple compelling considerations which the current SEC is thought to hold in regard. Hence, the aspirations of crypto enthusiasts may have to be temporarily shelved, at least until the elections of 2024 have been concluded.
Contrarily, Stark conveys an optimistic outlook for the post-2024 election scenario, especially if the seat of president is secured by a Republican. He emphasizes that a Republican-led administration is more likely to have the SEC Commissioner from their party as the acting Chair, until such time as a permanent appointment is made. Emphasizing the pro-crypto position of Hester Peirce, currently the senior-most Republican on the Commission, he speculates a potential shift in the regulatory landscape of cryptocurrency.
Taking into account the current anticipation surrounding cryptocurrency regulation, Stark’s suggestion that a Republican-led SEC could decrease crypto-enforcement efforts carries notable impact. The focus might pivot away from instigating cases against crypto exchanges purely based on registration violations. In addition, he theorizes that such a Republican SEC is more likely to warm up to a Bitcoin spot ETF.
Furthermore, significant crypto-friendly regulatory actions could also happen under a Republican-controlled SEC. In Stark’s view, if Peirce becomes acting Chair of the SEC, we may expect a pause in the SEC’s enforcement and disruption in the crypto domain. Given Peirce’s reputation of dissent to most crypto-related SEC actions, this scenario portends a significant shift in US crypto-regulation.
This wide range of possibilities underlines the cruciality of the upcoming election in defining the future course of crypto regulation. Yet, it evokes skeptical thought, presenting a question – will the political climate have an overbearing influence on the technological and financial innovation revolving around cryptocurrencies? Only time will tell.
Source: Cryptonews
