2024 Election Impact on SEC's Bitcoin Spot ETF Approval

blockchain.news:

The stance of the United States Securities and Exchange Commission (SEC) on Bitcoin spot ETFs has been the subject of extensive debate and speculation. John Reed Stark, who serves as the President of John Reed Stark Consulting LLC and was previously the Chief of the SEC Office of Internet Enforcement, has carried out an analysis on Twitter. His findings suggest that the 2024 U.S. Presidential Election could represent a pivotal moment in shaping the SEC's policy towards Bitcoin spot ETFs.

Position of the SEC Right Now

According to the insights that Stark divulged on the 13th of August 2023, it is very improbable that the present SEC would accept any Bitcoin spot ETF applications. He provides strong reasons, such as worries about market manipulation and the susceptibility of planned spot bitcoin-based exchange-traded products (ETPs). These concerns were also brought up by the independent analysts working for Better Markets in their comment letters submitted to the SEC on August 8th, 2023.

The Increasing Partisanship about Crypto Regulation at the SEC Stark draws attention to the growing partisanship about crypto regulation at the SEC. Although cryptocurrency was formerly considered a non-partisan subject, it has recently become a point of contention, particularly inside the SEC.

Impact of the 2024 Election

The approach that the SEC takes towards Bitcoin spot ETFs may undergo a fundamental adjustment after the presidential election in the United States in 2024. Stark is of the opinion that the SEC would most likely take the following actions in the event that a Republican is elected president:

Reduce dramatically the amount of effort it puts towards crypto-enforcement and concentrate primarily on fighting fraud