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Former SEC Official Believes Likelihood of Bitcoin Spot ETF Approval Is ‘Slim and None’

Press Releases Crypto News BeInCrypto Former SEC Official Believes Likelihood of Bitcoin Spot ETF Approval Is ‘Slim and None’

John Reed Stark, a former official of the United States Securities and Exchange Commission (SEC), has heightened his skepticism over the chances of a Bitcoin exchange-traded fund (ETF) gaining approval.

‘The chances for SEC approval of a Bitcoin spot ETF are Slim and None (and Slim just left town),’ he states.

Reed Cites Lack of Regulations And Oversight

On Aug. 19, Stark made a post on X (formerly known as Twitter) where he stated that cryptocurrency is a “cesspool of grift, fraud and chicanery.”

In particular, he refers to an Aug. 2 report that claims widespread bots on the X platform helped pump the price of various cryptos, including coins traded by Alameda Research, the sister company of FTX, just prior to its collapse.

The research claims that mere mentions of altcoins by Tesla and SpaceX CEO Elon Musk appear to have caused prices to spike by as much as 50% within one day.

Stark uses these findings to support his argument that there is not enough transparency in crypto right now.

“There is no bonafide method to value mathematical computational blather. No fundamentals, no balance sheets, no cash flow, no product, no management,” Reed claims. He also cited the lack of regulations as a reason for his doubts about the SEC approving a Bitcoin ETF:

“Second, there is no crypto-related regulatory oversight, transparency, consumer protections, insurance, licensure, net capital requirements or any other effective customer protections.”

Stark has previously pointed out the possibility of the SEC altering its views on Bitcoin ETFs following the US Election Day on Nov. 5, 2024.

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Author: Ciaran Lyons

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