John Reed Stark published a post outlining the regulator’s reasons for possibly rejecting the launch of cryptocurrency ETFs. Stark cited the nonprofit organization Better Markets in urging the SEC to reject proposed rule changes that would have made it easier to launch these investment products.
Better Markets supported the SEC’s approach to regulating the crypto industry, agreeing with the agency that the bitcoin market is prone to artificially inflated trading volumes and manipulation. According to the Better Markets letter, the bitcoin market is largely dependent on a select group of individuals and organizations serving the network.
Stark also made a prediction about the future of cryptocurrency regulation after the upcoming 2024 presidential election. According to a former SEC official, if the Republican candidate wins, the presidential administration will take a more loyal stance toward the crypto industry. Then SEC Chairman Gary Gensler will step down and SEC Commissioner Hester Peirce, known for her friendly attitude toward cryptocurrencies, will take his post. That means the SEC will end its harsh enforcement actions against cryptocurrency companies and approve spot bitcoin ETFs.
Esther Pierce has long criticized the agency for rejecting applications from companies looking to launch cryptocurrency ETFs. Pierce believes this is hampering the industry’s growth, and the U.S. could fall behind other countries that have already launched similar products.