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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 06, 2023 08:48 UTC
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Spot Bitcoin ETF Approval Looms, But is the SEC’s Approach Correct?
The SEC is expected to rule on a spot Bitcoin ETF between December 7-10.
A spot Bitcoin ETF could push Bitcoin beyond $50,000.
The SEC could label Bitcoin as a security, which would subject it to increased scrutiny.
New thrills everyday! John E. Deaton, the influential XRP lawyer and founder of Crypto Law US, is sounding alarms about the United States Securities and Exchange Commission’s (SEC) handling of the eagerly awaited spot Bitcoin ETF approval.
The cryptocurrency scene is buzzing with excitement as Bitcoin’s price shoots past $44,000, a high not seen in 19 months. Experts credit this surge to growing expectations of the SEC possibly approving a spot Bitcoin ETF, rumored to happen between December 7-10.
Regulatory Hurdles: A Warning Note
Adding a touch of reality to the optimism, former SEC luminary John Reed Stark shares insights through Deaton, hinting at potential regulatory challenges that could cast doubt on the ETF’s approval and stir discussions among investors.
Legal expert Joe Carlasare dives into the recent BlackRock/iShares S-1 filing, pointing out the SEC’s request for language hinting that Bitcoin might be deemed a security. This development raises questions about the SEC’s intentions, given the strong signs pointing to a Bitcoin spot ETF approval.
Read More: BlackRock and Bitwise Revamp Bitcoin Spot ETF Applications
Deaton Voices His Concern
Reacting to Stark’s analysis of SEC Chair Gensler’s strategy, John Deaton expresses worry about a looming regulatory “rug pull.” Despite Bitcoin’s surging prices due to the expected spot Bitcoin ETF approval, Deaton warns of a potential setback from the SEC’s strict stance under Gensler.
If the SEC labels Bitcoin as a security, it could reshape the trading landscape, subjecting the digital asset to increased regulatory scrutiny and potentially slowing down its momentum.
Tension Builds: What Will the SEC Decide?
With the cryptocurrency market riding high on Bitcoin’s surge, the final decision on spot Bitcoin ETF approvals remains uncertain. This decision holds weight, as approval could push Bitcoin beyond $50,000. Conversely, a negative ruling—especially one involving Bitcoin’s classification as a security—could pose a significant hurdle to the asset’s price recovery.
Bloomberg Analyst James Seyffart shares similar sentiments, predicting a potential spot Bitcoin ETF approval around December 10. Additionally, he anticipates a green light for ARK Invest’s Spot Bitcoin ETF by January 10 of the following year.
We’re in the Endgame Now!
The cryptocurrency market stands at the edge of anticipation as it awaits the SEC’s decision. The approval of a spot Bitcoin ETF could mark a groundbreaking era for Bitcoin and the broader cryptocurrency landscape, potentially ushering in a wave of institutional adoption and investment. Conversely, a negative decision—particularly one involving the classification of Bitcoin as a security—could send ripples through the market, challenging Bitcoin’s resilience and threatening its upward momentum.
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