The United States Securities and Exchange Authority (SEC) will not currently approve Bitcoin mutual funds (ETFs), that is the statement from the former head of the Agency's Office of Internet Enforcement, John Reed Stark.
"My opinion is that the SEC will NOT currently approve Bitcoin mutual fund (ETF) applications for a variety of compelling reasons," Stark wrote today on X (formerly known as Twitter).
However, Stark shared that if a Republican wins the United States Presidential election in 2024, it is likely that the SEC will reduce its enforcement efforts against cryptocurrencies and "become more receptive to approving Bitcoin mutual funds (ETFs) as well as more inclined to take regulatory action significantly crypto-friendly."
Stark also claimed that if the next President is a Republican, the current SEC Chair, Gary Gensler, “will probably resign,” and Hester Peirce — known as “Crypto Mom” in the industry — could become interim chair, and “the SEC disrupts crypto-related issues will most likely come to an abrupt halt.”
SEC vs. Crypto
The SEC has recently stepped up enforcement efforts against crypto. Earlier this week, crypto exchange Bittrex reached a settlement with the institution for $24 million after being accused of operating as an unregistered exchange in April. The SEC also filed a letter with the Southern District of New York on Wednesday seeking permission to appeal the court's ruling in the Ripple Labs case — which is generally considered a partial defeat for the institution. To date, the SEC has not approved a Bitcoin mutual fund (ETF) after years of trials.