The cryptocurrency market continues its characteristic volatility, with the BTC/USD pair registering a slight uptick of approximately 0.10% and currently trading at a noteworthy $29,442 on Monday. Against this backdrop, recent revelations have sent ripples through the crypto community.
A former official of the US Securities and Exchange Commission (SEC) has come forward, expressing reservations about approving Bitcoin Spot Exchange-Traded Funds (ETFs).
These concerns, which stem from the ongoing regulatory deadlock and evident political polarization, underscore the intricate challenges that the rapidly evolving cryptocurrency sector grapples with.
Former SEC official John Reed Stark has raised an alarm about the unlikely approval of Bitcoin Spot ETFs due to the prevailing regulatory division. This concern comes on the heels of the postponement of Cathie Wood’s Ark Invest application, pushing the potential decision into 2024.
Stark, drawing from insights by “independent and objective experts at Better Markets,” contends that the regulatory landscape could shift after the US presidential elections, especially if a Republican administration assumes power. He observes that the political fissures affecting the SEC have now extended into the cryptocurrency realm.
Stark identifies potential advantages for the crypto industry should a Republican presidency come to fruition in 2024. This includes the possibility of reduced SEC scrutiny on crypto matters and a pivot towards focusing on fraud cases rather than registration violations.
Furthermore, Stark posits that a Republican administration might be more amenable to greenlighting a Bitcoin spot ETF and implementing other favorable regulatory measures for the crypto sector.
The former SEC official underscores the necessity for a balanced commission, one that features equal representation of political affiliations among its commissioners. Such a configuration could bridge the partisan gaps and promote more reasoned decision-making.
Stark points to the prospect of Hester Pierce, affectionately known as the Crypto Mom, potentially assuming an interim leadership role in the event of a power shift. This could lead to a relaxation of regulatory pressures on the cryptocurrency industry, given Pierce’s history of advocating for adopting Europe’s MiCA framework and opposing certain regulatory actions against crypto.
Amidst these developments, Bitcoin’s price has risen since the start of the week. However, its gains have been curtailed by the strengthening US dollar. As the greenback gained nearly 0.15% against major currencies, BTC’s upward momentum was limited for the day.
Bitcoin price prediction
Despite this, Bitcoin’s support remains anchored around the $29,200 mark, maintaining its technical stance. A neutral trading outlook prevails, with the primary challenge being to overcome the $29,600 barrier. Should the cryptocurrency surpass this threshold, a potential ascent toward the $30,200 level could be in the offing.