The cryptocurrency world is awaiting the ruling of the Securities and Exchange Commission (SEC) in favor of a new ETF. So far, the agency rejected every application for a Bitcoin ETF based upon the spot price.
ARK was the latest to feel the stance of the SEC. It had its application punted as the SEC opened it up to comments and refuse to rule.
Some are looking toward Blackrock, the next application in line for a decision.
The cryptocurrency industry is seeking approval mostly because it is believed to be extremely bullish. Since price is the one thing that matters to most, this is what the majority are focusing upon.
The Rejections Will Keep Coming
It might be time to roll back expectations.
The former SEC Office of Internet Enforcement Chief John Reed Stark took to X, sharing his view on the situation.
Basically, he feels there will not be an approval for this product under the current administrations. If there is a change in party in the next election, with the White House going to the Republicans, it could mean a new SEC could approve it.
This is a major blow to those who are looking for the bull market to kick off based upon the SEC's decision.
Crypto Mom
A Republican administration could lead to the resignation of Gary Gensler, who has led the crackdown on the industry.
This would lead to the potential of Hester Peirce taking over as acting chair. She is known throughout the industry as "Crypto-Mom", often taking positions that are counter to what the agency.
She is seen as very level headed towards the regulation of the industry. Unlike Gensler, who is regulating through enforcement, Peirce is in favor of putting the conditions out there and giving the industry a period of time to get in compliance.
Of course, this is all speculation at this point. There are no guarantees that the Republicans will win the White House in 2024. That said, there are going to be lines drawn around cryptocurrency. This could be a hot topic amount the different candidates.
One of the leading Republican candidates is Ron DeSantis who, as Governor of Florida, signed a law making the use of CBDC in the state illegal. He has taken the position of being pro-crypto.
Whatever happens in terms of the election it appears that two things are in play:
- the topic will be a major part of the campaigns
- the SEC will likely keep rejecting the Bitcoin ETF
The industry is going to have to find something else to kickstart the bull run.
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