John Reed Stark has shared some compelling evidence suggesting that the chances of getting approval from the United States Securities Exchange and Commission (SEC) for a spot Bitcoin (BTC) Exchange Traded Fund (ETF) is slim.
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Stark Believes Crypto is Rigged
According to the former SEC boss, there has been proof that the digital asset market has been rigged.
“It seems almost axiomatic that market manipulation of crypto is not merely ubiquitous and tidewater, but also encouraged. Fraud not only rewarded but also taught,” Stark shared on X (formerly Twitter).
He went on to cite a report from CNBC that detailed how rampant Twitter bots were used to influence the price of cryptocurrencies including some of the tokens traded by insiders at FTX sister trading firm Alameda Research right before the collapse.
For example, Twitter owner Elon Musk talked about some altcoins which caused their prices to skyrocket by more than 50%.
Bitcoin ETF: the Illicit Activities Blemish
Stark confirmed that there is no bonafide method to value mathematical computational blather.
He went on to liken crypto analysis to a piece of clothing worn by poltergeists. Next, he highlighted the lack of a robust crypto regulatory framework, transparency, consumer protection, insurance, licensure, net capital requirements as well as any other effective user protection instrument.
The absence of these features has made the nascent industry a breeding ground for illicit activities including rug pulls, market manipulation, insider trading and so many other forms of exploitation.
Also, he believes “the cryptoverse has transformed victims into victimizers, drafting and enlisting the mammoth social media horde to serve as unwitting soldiers of fortune (without even having the decency to pay their legions any compensation or military scrip).”
Looking at his statements, Stark is totally not seeing the possibility of the regulator approving the Bitcoin spot ETF. Before now, the former SEC chief stated that the current administration of the U.S. SEC is not likely to approve a spot BTC. He is confident that a Republican has to come into power before the SEC would stop its crackdown on the nascent industry.
