The possibility of the United States Securities and Exchange Commission (SEC) granting approval for a spot Bitcoin (BTC) Exchange Traded Fund (ETF) has resurfaced, prompted by the recent submissions of applications for the offering by Investment management firm BlackRock and its counterparts, just two months after their initial submission.
Spot Bitcoin ETF: A Challenging Perspective
Former SEC Office of Internet Enforcement Chief John Reed Stark recently expressed his viewpoint on this matter on X (formerly Twitter).
Stark is of the opinion that the current leadership at the U.S. SEC is unlikely to grant approval for a spot Bitcoin ETF, citing several convincing rationales. He pointed out that some of these justifications have been thoroughly outlined by experts from the non-partisan and nonprofit organization Better Markets in their SEC Comment Letters dated August 8, 2023.
Will the SEC Approve Any Of The Recent Bitcoin Spot ETF Applications?
— John Reed Stark (@JohnReedStark) August 13, 2023
People often ask for my opinion on whether the SEC will approve any of the recent spate of bitcoin spot ETF applications, which is an interesting and important question.
My take is that the current SEC will… pic.twitter.com/lPXebl03Y4
These letters were crafted as responses to a series of proposed rule modifications put forth by national securities exchanges. These changes revolved around the listing and trading of Exchange Traded Products (ETPs) based on spot Bitcoin (BTC).
Potential Impact of Republican Party on the Crypto Landscape
Moreover, the former SEC veteran emphasized that the commission’s attitude could significantly shift towards approving a Bitcoin spot ETF and adopting more crypto-friendly regulatory measures.
A potential Republican presidency might trigger the departure of Gary Gensler, the current SEC Chair, according to Stark. In this scenario, Hester Peirce, widely known as “Crypto Mom” in the industry, could step in as the acting Chair. Stark believes that this leadership transition holds the potential to curtail the SEC’s stringent approach towards cryptocurrencies.
Stark’s perspective aligns to some extent with recent statements from Ron DeSantis, a Republican presidential candidate and the incumbent governor of Florida. DeSantis has consistently expressed his support for Bitcoin and his intention to safeguard the primary cryptocurrency’s interests should he secure the presidency.
Consequently, it seems plausible that approval for a Bitcoin spot ETF might not materialize before 2024, considering the culmination of the election process.
