Recent comments from former SEC official John Reed Stark suggest a potential paradigm shift in the United States’ approach to crypto enforcement. Stark believes that a Republican victory in the 2024 presidential election could lead to a significant reshaping of the crypto-regulatory landscape.
Currently, several Republican aspirants are courting the public, with former-President Donald Trump topping the popularity chart among Republican voters. Florida governor Ron de Santis and South Carolina Senator Tim Scott follow in popularity. A Republican electoral victory, Stark postulates, could unceremoniously end the tenure of current SEC chair Gary Gensler.
Stark expects Hester Peirce, nicknamed “Crypto Mom,” for her soft stand towards cryptocurrency, to take over the reigns from Gensler, thereby enabling a more welcoming atmosphere for the crypto market. People remember Peirce for her resistance to some of the crypto-related enforcement directives from the SEC.
In stark contrast to the past where political affiliation had little to no impact on crypto regulation, the crypto landscape has become a political battlefield. When Stark began penning thoughts about crypto in 2017, a broad section of politicians, irrespective of the party line, were united in their view that crypto was a potential menace. Jim Reed recalls then-President Donald Trump, Secretary Hilary Clinton, and Congresswoman Maxine Waters categorizing cryptocurrency as a “dangerous and horrific plague.”
The narrative seems to have changed much since then. While the Republican candidate and Florida Governor, Ron de Santis, makes known his intention to “protect” Bitcoin should he become President, Senator Elizabeth Warren appears to have made it her mission to clamp down on all forms of crypto in the United States.
Despite Stark’s pessimistic outlook on SEC’s friendliness towards crypto unless a Republican becomes President, he does foresee very compelling reasons why the SEC might impede Bitcoin ETFs rollout. He draws attention to an Aug. 8 Better Markets SEC Comment letter that points out the Bitcoin market’s fragility due to skewed trading volumes, highly concentrated ownership, and reliance on a select few for maintaining the Bitcoin network, leaving retail investors vulnerable to manipulative acts. Stark believes the dangers outlined in the comment letter could lead to the SEC dismissing the Bitcoin ETF filings by giants such as BlackRock and Fidelity.
The crypto market remains a high stakes game; the players’ success could be predicated on the political leanings of the President in the oval office come 2024. There’s nothing left but to hold our breaths and wait and see.
Source: Cointelegraph
