The U.S. Securities and Exchange Commission (SEC) is pivoting towards a more accommodating approach regarding the highly awaited spot Bitcoin ETF. This change draws widespread attention, particularly within the cryptocurrency circles, where key figures like advocate John E. Deaton are significantly influential.
Commenting on insights shared by renowned analyst Scott Melker, also known as “The Wolf Of All Street,” Deaton reinforced Melker’s points, acknowledging, “Scott is correct.” Deaton’s endorsement is particularly noteworthy given his earlier reservations. He had anticipated that the SEC, sticking to its historical script, would unleash a detailed dossier possibly brimming with quantitative and qualitative reasons to justify rejecting the spot Bitcoin ETF proposals. His conjecture was rooted in past SEC practices that courts found indiscriminate.
Interestingly, Deaton refrains from attributing this positive adjustment directly to any transformation in SEC Chairman Gary Gensler’s personal views on Bitcoin. Though Gensler’s reservations concerning Bitcoin’s susceptibility to unlawful misuse remain, Deaton interprets the SEC’s softened approach as a response to its recent judicial setbacks, including a crucial loss in the Grayscale legal battle.
Deaton also shed light on the “Larry Fink effect,” alluding to the sway of powerhouse financial entities. He argues that Gensler, akin to previous SEC leaders, appears more attuned to the voices of high-profile donors and corporate behemoths than lesser, albeit essential, stakeholders. This observation fuels speculation within crypto spheres that Gensler, mirroring the career trajectories of predecessors like Jay Clayton and Bill Hinman, may be positioning himself for a prestigious corporate stint, potentially with giants such as Goldman Sachs or BlackRock, after his tenure at the SEC.
Adding further intrigue, Bloomberg’s ETF experts report an encouraging shift in the dialogue between the SEC and Bitcoin ETF proponents. These conversations are delving into fundamental issues, from custody solutions and GAAP compliance to transparent risk disclosures and addressing environmental apprehensions linked to crypto mining practices. This promising engagement has propelled Bloomberg’s confidence in the likelihood of the SEC endorsing a spot Bitcoin ETF, now estimated at a buoyant 90%.