Bitcoin Spot ETF Approval Not In Sight, Says Former SEC Enforcement Attorney – NewsTo
Bitcoin Spot ETF Approval Not In Sight, Says Former SEC Enforcement Attorney

Bitcoin Spot ETF Approval Not In Sight, Says Former SEC Enforcement Attorney


Bitcoin ETF applications have been under scrutiny, with insights from John Reed Stark, a digital compliance expert and former SEC enforcement attorney with 15 years of experience. Stark’s assessment, shared in an X post, suggests that the SEC’s approval for these applications is unlikely due to specific factors.

Cryptocurrency Market Is Susceptible To High Manipulation: Reed says

John Reed has pointed out research that indicates how the cryptocurrency market can be easily manipulated at this point. Some of the sources he highlighted were how X ( formerly Twitter) managed to impose man-made inflation on the tokens putting many investors in a position of being scammed. Despite the fact that this practice causes major losses, Reed has said that it is a practice that is being embraced by a large number of people.

Cryptocurrency Ecosystem

Reed went further to associate the cryptocurrency market with an environment. He raised the issue of how cryptocurrency transactions lack centralization and therefore are not likely to be transparent. Analysis of the price of tokens was also an issue when he mentioned that the metrics were different from those of stocks. Manipulation as stated before was another issue that he said rendered the market susceptible to high controversy and dishonesty.

The lack of centralization makes the investors vulnerable as there are no regulations. If anything goes wrong, there is nothing that the investor can do.

 

Social Media Greatly Influences Cryptocurrency Assets:

Reed discussed how victims of fraud may decide to reciprocate the acts on other people. Therefore, they may hype a certain entity in the media which could lead to the downfall of other people’s investments. In his final statements, he urged investors to be cautious while dealing with cryptocurrencies. An investor can be left with losses while another makes profits at the same time.



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