- In recent weeks, the cryptocurrency sector has been awaiting a decision from the U.S. Securities and Exchange Commission (SEC) regarding the spot Bitcoin Exchange Traded Fund (ETF).
- Stark claimed that the chances of approval were ‘weak or non-existent’ and referred to evidence of market manipulation.
- Stark’s criticism extended to the ethical consequences of the cryptocurrency frenzy, accusing the crypto space of not only rewarding fraud but actively teaching it.
Former SEC official expresses negative views on spot Bitcoin ETFs and the crypto world, making accusations against the crypto world.
Former SEC Official Continues to be Crypto-Averse
In recent weeks, the cryptocurrency sector has been awaiting a decision from the U.S. Securities and Exchange Commission (SEC) regarding the spot Bitcoin Exchange Traded Fund (ETF). However, John Reed Stark, a former SEC official who served as the agency’s lawyer, expressed doubts about the possibility of such approval.
In an assessment shared on X account on August 18, Stark claimed that the chances of approval were ‘weak or non-existent’ and referred to evidence of market manipulation.
This assessment came in response to a recent study conducted by the Network Contagion Research Institute and a CNBC report. The study highlighted common methods used to manipulate the market, ethical shortcomings, and regulatory uncertainty. Stark said:
“The Chances of SEC Approval for Spot Bitcoin ETF are Weak or Non-Existent. The crypto world is a pit of fraud, deceit, and trickery.”
Stark emphasized the chaotic and anarchic nature of the crypto market, describing it as a “Financial Market of Anarchy, Like the Walking Dead.”
The former SEC lawyer sounded the alarm about the lack of regulatory oversight, consumer protections, and financial safeguards in the crypto industry. He lamented the absence of fundamental elements, such as balance sheets and traditional indicators, on which investors typically rely to make informed decisions in more institutionalized markets.
CNBC’s report detailed the widespread influence of bots associated with listed crypto assets on FTX in boosting cryptocurrency prices. This manipulation raised concerns about the authenticity of market movements and the potential for unsuspecting investors to fall victim to orchestrated schemes. Stark’s criticism extended to the ethical consequences of the cryptocurrency frenzy, accusing the crypto space of not only rewarding fraud but actively teaching it.
The Situation of Victims
Stark expressed concerns that manipulation victims unwittingly become participants in schemes and frequently unknowingly support fraudulent activities through social media.
In a period of ongoing evolution for the cryptocurrency market, Stark’s views highlight the urgent need for regulatory clarity and investor protection in the industry. His cautionary stance against the ‘Greater Fool Theory’ enthusiasts, who focus on excessive speculation, draws attention to regulatory gaps that could lead to financial crises and significant losses for investors.
SEC recently postponed its decision on the spot Bitcoin ETF once again. Such approval is considered a potential catalyst to escape from the recent significant sell-off in the market.
Indeed, analysts argue that the news of approval could assist the market and be effective in recovering from the recent downturn.
