XRP Lawyer John Deaton Raises Concerns Over SEC's Approach to Spot Bitcoin ETF Approval – Coinpedia Fintech News

John E. Deaton, the XRP lawyer and founder of Crypto Law US, has voiced concerns over the U.S. Securities and Exchange Commission’s (SEC) handling of the much-anticipated spot Bitcoin ETF approval.

The cryptocurrency market is buzzing with the recent surge in Bitcoin’s price, breaking past the $44,000 mark for the first time in 19 months. Experts attribute this bullish trend to the growing anticipation of the SEC’s potential approval of a spot Bitcoin ETF, with predictions suggesting a launch window between December 7-10.

John Reed Stark’s Pessimistic Outlook

John Reed Stark, a former SEC official, has added a note to the optimism. His observations, reposted by Deaton, hint at possible regulatory challenges that could derail the ETF’s approval, sparking debates and concerns among investors and market analysts.

Legal expert Joe Carlasare noted the recent BlackRock/iShares S-1 filing and the SEC’s demand for language that suggests Bitcoin could be classified as a security. This move has raised eyebrows and questions about the SEC’s intentions, given the strong likelihood of a Bitcoin spot ETF approval.

Reacting to Stark’s in-depth analysis of SEC Chair Gensler’s approach, John Deaton expressed apprehension over a potential regulatory “rug pull.” While the Bitcoin price is surging due to the high likelihood of the spot Bitcoin ETF’s approval, Deaton warns of a possible backlash stemming from the SEC’s strict stance under Gensler’s leadership.

Implications of Bitcoin as a Security

If the SEC were to classify Bitcoin as a security, it could significantly alter the landscape for trading the digital asset on exchanges. This reclassification would bring about heightened regulatory scrutiny and could potentially stall Bitcoin’s current momentum.

As the cryptocurrency market remains bullish with Bitcoin’s recent price spike, the final decision on the approval of spot Bitcoin ETFs is still pending. The outcome of this decision is critical, as approval could propel Bitcoin beyond $50,000, while disapproval, especially if Bitcoin is deemed a security, could hinder the asset’s price recovery.

Bloomberg Analyst James Seyffart, echoing similar sentiments, noted the possibility of a spot Bitcoin ETF approval around December 10. He also anticipates a potential green light for ARK Invest’s Spot Bitcoin ETF by January 10 of the following year.

The cryptocurrency market is on the edge of its seat as it awaits the SEC’s verdict. Approval of the spot Bitcoin ETF could mark a significant milestone for Bitcoin and the broader cryptocurrency market, potentially ushering in a new era of institutional adoption and investment. On the other hand, a negative decision, especially if it involves classifying Bitcoin as a security, could send shockwaves through the market, challenging Bitcoin’s resilience and momentum.

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