The cryptocurrency market has been focused on whether the US Securities and Exchange Commission (SEC) will approve one of the applications for a Bitcoin Exchange-Traded Fund (ETF). However, former SEC employee John Reed Stark, who previously worked as an attorney at the federal regulatory agency, expressed his opinion that the possibility of such approval is extremely low or unlikely.
“Low or Nonexistent”
Stark, in a lengthy evaluation post on his personal account, claimed that the federal regulatory agency’s likelihood of approving a spot Bitcoin ETF is low or definitively impossible, citing new evidence alleging that the cryptocurrency market is riddled with fraud. Stark’s negative comment on the cryptocurrency market came after the Network Contagion Research Institute’s recent study and CNBC’s report on the comprehensive methods, rule deficiencies, and regulatory uncertainties used to manipulate the market.
Stark made a striking comment, stating, “The possibility of a spot Bitcoin ETF being approved by the SEC is low or nonexistent. […] The cryptocurrency world is a sewer full of fraud, deception, and chicanery.” He also referred to the chaotic and anarchic nature of the cryptocurrency market, describing it as a “Walking Dead-Like Anarchic Financial Market.”
Major Hurdles for ETF Approval
Stark warned about the lack of regulatory oversight, consumer protections, and financial safeguards in the cryptocurrency market. He emphasized the absence of the fundamentals, balance sheets, and traditional indicators that investors typically rely on to make informed decisions in more established markets. The CNBC report extensively explains the widespread influence of bots in artificially inflating cryptocurrency prices, particularly those associated with cryptocurrencies listed on the collapsed crypto exchange FTX. Manipulation leads unsuspecting investors to become victims of orchestrated traps.
Stark’s candid criticism extends to the ethical consequences of cryptocurrencies. Accusing the cryptocurrency market of not only rewarding fraud but also actively teaching it, Stark expressed his concern about the unwitting promotion of fraudulent activities through social media, turning participants into unintentional accomplices of planned traps without compensation or military command payments. He added, “Even worse, cryptocurrencies prepared and enlisted the vast social media army to serve as soldiers of wealth (without even showing the courtesy of compensating or paying military command to their legions) and turned victims into victims.”
As the cryptocurrency market continues to evolve, Stark’s views highlight the urgent need for regulatory clarity and investor protection in the industry. The former SEC employee’s stance, warning against widespread speculation and regulatory loopholes that could lead to financial crises and significant losses for investors, is noteworthy. It is worth noting that the SEC recently postponed its decision on the spot Bitcoin ETF once again.
In general, the approval of an ETF by the federal regulator is considered a potential catalyst for the rise of the cryptocurrency market. Analysts argue that the approval news could help the market overcome the selling pressure it has faced recently.
