Former SEC Official Warns Spot Bitcoin ETFs Will Create ‘Wall Street Fee-Sucking Scam of Epic Proportions’

The U.S. Securities and Exchange Commission’s erstwhile caput of net enforcement has warned that spot bitcoin exchange-traded funds (ETFs) “will make yet different Wall Street fee-sucking capitalist scam of epic proportions.” In addition, helium stressed that it volition apt beryllium the astir centralized crypto contraption conceivable.

Ex-SEC Official’s Spot Bitcoin ETF Warnings

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark issued immoderate warnings astir spot bitcoin exchange-traded funds (ETFs) successful a station connected societal media level X Monday. Stark is presently president of cybersecurity steadfast John Reed Stark Consulting. He founded and served arsenic main of the SEC Office of Internet Enforcement for 11 years. He was besides an SEC enforcement lawyer for 15 years.

Expressing his skepticism astir spot bitcoin ETFs, Stark wrote: “As to whether the support of a spot bitcoin ETF is simply a bully thing, my presumption is that it is not.” He cautioned:

The precise thought of a bitcoin spot ETF remains a laughable concept, not lone due to the fact that it volition make yet different Wall Street fee-sucking capitalist scam of epic proportions, but besides due to the fact that a bitcoin spot ETF is possibly the astir ‘centralized’ crypto contraption conceivable.

The SEC is presently reviewing 13 applications for spot bitcoin ETFs. The regulator reportedly met with respective applicants past week and gave them until the extremity of the week to record amendments to their spot bitcoin ETF filings. Moreover, the regulator besides asked them to usage the cash-creation method, alternatively of the in-kind instauration method. Blackrock, the world’s largest plus manager, primitively pushed for the in-kind model, and adjacent projected a revised in-kind method. However, the steadfast failed to person the SEC and has present adopted the currency method arsenic elaborate successful its latest filing.

Citing reports of aggregate meetings betwixt SEC officials and spot bitcoin ETF issuers, successful summation to discussions regarding the currency instauration method, Stark said past week that based connected his 20 years of experience, “the SEC’s support of immoderate iteration of immoderate benignant of bitcoin spot ETF seems likely.” The erstwhile SEC net enforcement main opined:

I conscionable can’t look to get implicit the conception that the support of a bitcoin spot ETF whitethorn really go a superior talking constituent of SEC Chair Gary Gensler legacy. Like astir of the cryptoverse, this conscionable seems upside down. Say it ain’t truthful Gary.

What bash you deliberation astir the statements by erstwhile SEC net enforcement main John Reed Stark? Let america cognize successful the comments conception below.