Former SEC Official Says Gary Gensler’s Legacy Could Be the Approval of Spot Bitcoin ETF

The U.S. Securities and Exchange Commission’s former head of internet enforcement, a crypto skeptic, now believes that the SEC is likely to approve a spot bitcoin exchange-traded fund (ETF). He further expressed that “the legacy of SEC Chair Gary Gensler could be the approval of a spot bitcoin ETF,” emphasizing: “That is a mammoth victory for big crypto.”

Stark Now Expects SEC to Approve Spot Bitcoin ETF

Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark now believes that the securities regulator is likely to approve a spot bitcoin exchange-traded fund (ETF). Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years.

This week, the SEC reportedly made “rare” calls to spot bitcoin ETF filers regarding their applications. Fox Business journalist Eleanor Terrett shared on social media platform X Thursday: “Sources that were on the call tell me it was to do with making sure everyone is doing cash creates. The SEC asked issuers to remove all hints of in-kind redemptions from their filings.”

Commenting on Terrett’s statement, Stark opined on X Friday: “Interesting. If these posts are true, some iteration of a spot bitcoin ETF seems likely.” While emphasizing that “Precisely what the characteristics of an approved bitcoin spot ETF will entail remains to be seen,” the former SEC internet enforcement chief stated:

Under any circumstance, the legacy of SEC Chair Gary Gensler could be the approval of a spot bitcoin ETF. That is a mammoth victory for big crypto. Strange days indeed.

Until now, Stark had maintained his skepticism about the SEC approving a spot bitcoin ETF. He said earlier this month that “the reported 90% likelihood of the SEC’s approval of a bitcoin spot ETF” is “absolutely absurd,” referencing Bloomberg’s analysts predicting a 90% chance of the SEC approving this investment product by Jan. 10.

The former SEC official has long been a crypto skeptic. He believes that crypto prices go up for two reasons. The first is “because there is no regulatory oversight to prevent market manipulation” and the second is “because people are able to sell hyped, FOMO’d, and overpriced crypto to a ‘greater fool,’ whether or not the crypto is overvalued.” He has cautioned several times that “crypto regulatory onslaught will never end.” Earlier this month, he warned of the end of crypto exchange Binance.

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