Bitcoin investors have encountered a series of letdowns concerning spot ETF applications, facing yet another disappointment on August 13 when the U.S. Securities and Exchange Commission [SEC] once again deferred the approval of the Ark 21Shares Bitcoin ETF.
The regulatory entity disclosed in its filing that it is soliciting public input on one of the proposed changes to the exchange-traded fund application. Consequently, the timeline for potential approval could now extend into 2024.
Notably, other major players in the field, including BlackRock, Wisdom Tree, Grayscale, and Invesco, are awaiting their fates as their applications are scheduled for review just a day later, closely followed by others in the queue.
Of particular interest is Grayscale, a crypto investment firm that took the SEC to court over the rejection of its proposal to transform the Grayscale Bitcoin Trust into an ETF. The firm currently awaits a court ruling on this matter.
In contrast, Gary Gensler, the present head of the SEC, has taken a tough stance towards the cryptocurrency sector, leading an aggressive regulatory campaign earlier in the year. Despite the barrage of denials, there appeared to be a faint glimmer of hope on the distant horizon.
As per insights from ex-SEC representative John Reed Stark, the landscape of crypto regulation might undergo a substantial transformation following Election Day. The stance of the United States’ securities overseer regarding cryptocurrency enforcement could experience a notable reversal, contingent upon a pivotal election slated for 2024.
Hester Peirce Could Be More Receptive In Approving Bitcoin Spot ETF
Stark, who previously held the position of Chief at the SEC Office of Internet Enforcement, foresaw the possibility of a significant shift in crypto-regulatory dynamics under the leadership of a Republican President. This transformation could encompass various changes, potentially including the selection of Commissioner Hester Peirce, to take over as the chairperson of the agency, replacing Gensler.
Cryptocurrency regulations have unfortunately become increasingly partisan at the SEC. If a Republican is Elected U.S. President in 2024, the SEC will likely: 1) decrease its crypto-enforcement efforts, 2) Become far more receptive to approving a bitcoin spot ETF, and 3) take other significant crypto-friendly regulatory actions.
Selecting Hester Peirce as the interim Chair of the SEC, according to Stark, is driven by her extensive history of disagreeing with and resisting the majority of crypto-related actions taken by the SEC.
Additional factors might contribute to a shift towards the cryptocurrency sector after the Ripple lawsuit where it gained a partial legal win. This outcome could raise uncertainties about the SEC’s attempts to categorize the majority of crypto assets as securities.