Until at least 2024, after the current election, a spot Bitcoin-backed exchange-traded fund (ETF) is not expected to be approved in the United States, according to John Reed Stark, a former director of the SEC’s Office of Internet Enforcement. Over the weekend, Stark offered his opinions on the social networking site X, noting that he expects there to be little change in the way that crypto is enforced this year and that spot ETF approvals would probably have to wait until the next year.
For more information on his viewpoint, see what Stark had to say: “My take is that the current SEC will NOT approve a bitcoin spot ETF application for a range of compelling reasons.”
He did, however, give a glimmer of optimism for Bitcoin and cryptocurrency supporters by speculating that 2019 would bring about better results. After Election Day, regulatory views toward cryptocurrencies, according to Stark, may significantly change. He emphasized the likelihood that Hester Peirce, the most senior Republican-appointed SEC Commissioner, would serve as acting chair until a permanent chair was selected if a Republican candidate were to win the president.
Because of her position in favor of cryptocurrencies, Hester Peirce is referred to as “Crypto Mom” among the cryptocurrency community. According to Stark, a Republican-led SEC would likely take action to scale down the agency’s attempts to enforce cryptography. This adjustment would probably include shifting the emphasis away from penalizing cryptocurrency exchanges for “pure registration violations.”
Furthermore, Stark said that a Republican-led SEC would be more receptive to the idea of a Bitcoin spot ETF and more likely to carry out other substantial regulatory measures that are favorable to cryptocurrencies. He noted that the enforcement and disruption linked to cryptocurrency inside the SEC would probably slow down greatly if Hester Peirce were to assume the post of acting Chair at the SEC given her history of disapproval and resistance to several crypto-related SEC measures.
Insight is provided by Stark’s analysis into the processes that could influence the regulatory environment for cryptocurrencies and similar financial products in the US during the next years.