The question of whether the US Securities and Exchange Commission (SEC) will approve a spot bitcoin (BTC) exchange-traded fund (ETF) has surfaced again two months after investment management firm BlackRock and its peers submitted their applications for the offer.
Spot Bitcoin ETF: the tough decision
John Reed Stark, former head of the SEC’s Office of Internet Enforcement, shared his thoughts on the possibility on X (formerly Twitter).
In his opinion, Stark believes that the current SEC administration is unlikely to do so to permit a spot BTC ETF for compelling reasons. He claimed that some of these reasons were duly documented by experts at the nonpartisan and nonprofit organization Better Market in their August 8, 2023 SEC comment letters.
The letters in question were written in response to the numerous rule changes submitted by national securities exchanges regarding the listing and spot trading of BTC Exchange Traded Products (ETPs).
Republicans could change crypto outlook
On the other hand, the former SEC chief believes that the trajectory of crypto regulation in the United States could change immediately after the election. Stark is confident that the SEC would change its mind about the burgeoning cryptocurrency industry if a Republican becomes president of the country next year.
More importantly, the SEC veteran said the commission will be “far more receptive to approving a bitcoin spot ETF and more likely to take other important crypto-friendly regulatory action.”
According to a statement from Stark, a Republican becoming the next president could trigger the resignation of Gary Gensler, the current SEC chairman, from the commission. Should that eventually happen, Hester Peirce, widely considered the “crypto mom” in the industry, could take over as acting chair. Stark believes this leadership change is strong enough to put an end to the SEC’s crackdown on cryptocurrencies.
Stark’s stance on a Republican government in the US has some support from Ron DeSantis’ recent campaign statement. The current governor of Florida and Republican presidential candidate has confirmed this Support for Bitcoin and his plan to protect the leading cryptocurrency if he wins the election.
Therefore, it is likely that a spot BTC ETF will not be approved until 2024, when elections are complete.
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