The cryptocurrency market is witnessing a significant surge, with Bitcoin breaking the $44K mark for the first time in 19 months, and currently trading at $43,820.31. This bullish trend coincides with the speculation that the U.S. Securities and Exchange Commission (SEC) may approve a spot Bitcoin Exchange-Traded Fund (ETF) between December 7-10. Amidst this optimistic climate, legal and financial experts are closely monitoring the SEC’s moves, considering the profound impact such a decision could have on the market.
John E. Deaton, a prominent XRP lawyer and founder of Crypto Law US, has raised concerns over the SEC’s possible approach to the Bitcoin ETF approval. Echoing sentiments of former SEC official John Reed Stark, Deaton suggested that the SEC’s demand for certain language in recent BlackRock/iShares S-1 filings could be indicative of a broader strategy. This move, which hints at classifying Bitcoin as a security, could lead to increased regulatory scrutiny and potentially hinder the ability to trade Bitcoin on exchanges.
The SEC’s unpredictable stance, as pointed out by Stark, includes a critique of SEC Chair Gary Gensler’s approach, often characterized by a disregard for internal dissent. This, coupled with Gensler’s history of suing law firm Covington and Burling and advocating for controversial rules, paints a picture of an agency that might be gearing up for significant regulatory actions.
If the SEC approves the spot Bitcoin ETF, the market could see Bitcoin’s value soar beyond $50K. Bloomberg Analyst James Seyffart supports this view, predicting not only a potential approval around December 10 but also a similar outcome for ARK Invest’s Spot Bitcoin ETF by January 10 next year. However, if the SEC opts to disapprove the ETF filings and categorize Bitcoin as a security, the ramifications could be dire, potentially stalling Bitcoin’s current momentum and causing substantial market fluctuations.
As the market holds its breath, the impending decision by the SEC remains a pivotal moment for Bitcoin and the broader cryptocurrency landscape. The outcome will not only dictate Bitcoin’s immediate future but also set a precedent for how digital assets are regulated and perceived in the U.S. financial system.
