Will Spot Bitcoin ETF also favor the SEC?

[Fiatless]

The news about spot Bitcoin ETF approval has been making rounds in the news recently. And it has brought so much hope that next year will be a profitable one for Bitcoiners. I have a feeling that the SEC will approve it next year because approving the ETF will also favor the SEC in some ways. It will promote centralization of the Bitcoin system which will make the sector very easy to regulate. It will be easier for this regulatory body to control the space through various policies targeted at these institutional investors.

I suspect that the reason why the SEC is delaying the approval is because they have not made enough regulatory policies to control the sector but they have intensified actions to make these laws. The clampdown on mixer services is one of the strategies of the SEC to make the Bitcoin space more centralized. And who knows if the next target might be decentralized exchanges.

Institutional investment in bitcoin will lead to an increase in the price of the currency which is good news to investors. But do you think the SEC will also benefit from the approval of Spot Bitcoin ETF?

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[_act_]

I do not know about the SEC than for them to do their work and regulate securities and exchanges. But the United States government will gain more because spot bitcoin ETF would be a way bitcoin can be easily be taxed and this is what you have answered yourself in your post. The SEC are working for the government and the government would be favoured.

[Fiatless]

I do not know about the SEC than for them to do their work and regulate securities and exchanges. But the United States government will gain more because spot bitcoin ETF would be a way bitcoin can be easily be taxed and this is what you have answered yourself in your post. The SEC are working for the government and the government would be favoured.

Thank you for your response. The SEC is an agency of the government, so they act on behalf of the state. The SEC in the post represents the government.

[tranthidung]

I have a feeling that the SEC will approve it next year because approving the ETF will also favor the SEC in some ways.

How will it help SEC?

The year of 2024 is very promising because there will be a President Election in the USA and if the USA. has a new President (not Biden), many new appointments will happen and Gensler might no longer be the SEC chair.

If a new chair of SEC supports Spot ETF, it will be approved because there are two supporters for it at SEC. Only one more supporters to pass it through and the USA will have a first Bitcoin Spot ETF. Gensler is a biggest barrier for a first Spot ETF approval.

It will promote centralization of the Bitcoin system which will make the sector very easy to regulate. It will be easier for this regulatory body to control the space through various policies targeted at these institutional investors.

It is against governmental benefits and they also see Bitcoin as one of threats for their centralized bank system so your point here is wrong.

[348Judah]

The news about spot Bitcoin ETF approval has been making rounds in the news recently. And it has brought so much hope that next year will be a profitable one for Bitcoiners.

Maybe we should understand this that it's more of halving next year than bitcoin spot ETF approval, wether the SEC approves application or not, bitcoin market remains dependent of the demand and supply rate, the recent fake news could be said that it has a little impact on the increase felt but yet it would have been the same news that would have make the market go dip when it was realized to be fake news.

I have a feeling that the SEC will approve it next year because approving the ETF will also favor the SEC in some ways.

People are just giving theirselves fake hope with the expectation that by next year some might been approved, but SEC themselves are not making any official release on this fact, so i will count this as part of the gist that accumulate to FUD.

It will promote centralization of the Bitcoin system which will make the sector very easy to regulate.

These companies applying for bitcoin spot ETF are not applying for bitcoin itself to be adopted by them, they are only seeking approval for the use of bitcoin market price in rating their stocks and market bonds with their clients, if SEC should regulate anything here, then not bitcoin but the organizations after the use of bitcoin spot ETF.

[_act_]

It is against governmental benefits and they also see Bitcoin as one of threats for their centralized bank system so your point here is wrong.

So why would the government allowed it to be approved?

If bitcoin spot ETF is approved, it is just a way to draw bitcoin closer for the government to be able to tax bitcoin (ETF) users.

See people seeing bitcoin more as investment and for trading. You can see El Salvador that legalized bitcoin, it can be used for payment of goods, services and salaries and businesses can accept it, but why more than 95% of El Salvadorans are still having USD in savings if compared to bitcoin. Bitcoin is not a threat to fiat.

[KiaKia]

SEC are full of people, they are not from other planets and the rumours of possible money making from Bitcoin and crypto is going around, tell me how it's impossible for those working with SEC not having Bitcoin at all? That's impossible.

Even while there was bans on Bitcoin in my country, some government workers and bankers purchased Bitcoin through my help, they give no fk about the government decision and they are passing out the rules and yet breaking them behind the walls.

Those bitcoin haters in the US are also investors, there is no way you can know that they are also buying themselves because you don't need anyone's presence to purchase some Bitcoin and hold, they just hate that people are turning into millionaires with crypto and not them.

[sunsilk]

Whatever the reasons SEC is delayed on the approval of these ETFs are, this is making me believe that they're going to put that in timing with the upcoming halving.

It's not a secret to them that the Bitcoin halving is about to happen somewhere between March-April of 2024.

That's why they're just letting it go and make the people speculate as much as they can and get close to the news that are manipulating the market into crazy pumps for the past weeks.

[NotATether]

I suspect that the reason why the SEC is delaying the approval is because they have not made enough regulatory policies to control the sector but they have intensified actions to make these laws. The clampdown on mixer services is one of the strategies of the SEC to make the Bitcoin space more centralized. And who knows if the next target might be decentralized exchanges.

Well, the regulatory policies that the SEC should be establishing were supposed to stop fraud. You know, the kind of stuff they let FTX and its band of disheveled incompetent geeks get away with for years.  

But the SEC can also fall prey to lobbying, especially from politicians. And we are seeing a lot of them try to shut down crypto by drafting bills - most not necessarily intended for the SEC, but can still cause a bad policy to be made nonetheless. But a clamping-down on ETFs shouldn't do anything to the average user anyway, because really, only institutions benefit from it. That's why I feel neutral about the topic.

It all comes down to the organization being basically a skeleton with no real funding for it to draft safe and useful policies.

[Jatiluhung]

Supervising the securities market has become the SEC's job. And of course the Spot Bitcoin ETF will also be categorized as a securities market because it will be under SEC supervision after approval. But I have a feeling that the SEC will not do much to make Bitcoin centralized. Because there is a difference between the regular bitcoin spot market and the Bitcoin Spot ETF. And the SEC has limited authority in this matter. Because Bitcoin itself is not considered a security in the US. So I'm not worried about anything else regarding the SEC and Bitcoin Spot ETFs. As an investor I am excited about big institutions joining bitcoin. But I also have my own concerns about this. But I can't explain my worries.

[Zaguru12]

It is against governmental benefits and they also see Bitcoin as one of threats for their centralized bank system so your point here is wrong.

So why would the government allowed it to be approved?

If bitcoin spot ETF is approved, it is just a way to draw bitcoin closer for the government to be able to tax bitcoin (ETF) users.
See people seeing bitcoin more as investment and for trading. You can see El Salvador that legalized bitcoin, it can be used for payment of goods, services and salaries and businesses can accept it, but why more than 95% of El Salvadorans are still having USD in savings if compared to bitcoin. Bitcoin is not a threat to fiat.

You are not getting it from tranthidung perspective, the government sees it as a threat because with bitcoin people will have freedom to actually do things freely with their money, like cross border transactions without having to pass through the hassle of banks to change from currency to another which benefits the banks. With bitcoin many people can go into total anonymity of their funds without the preying eyes of the government.
Look at the example of the citizens of El Salvador you brought, they treat bitcoin as an investment rather than saving in fiats because of its characteristics but do the government also see this as nothing? No.

Also i agree that this SEC approval of bitcoin ETF will definitely have an advantage they want maybe something like keeping taps on those investing into bitcoin since it will be traded on traditional exchanges they don’t need to bother much about regulating the common exchanges we have in cryptocurrency. But I don’t see this centralizing bitcoin market one bit

[_act_]

It is against governmental benefits and they also see Bitcoin as one of threats for their centralized bank system so your point here is wrong.

So why would the government allowed it to be approved?

If bitcoin spot ETF is approved, it is just a way to draw bitcoin closer for the government to be able to tax bitcoin (ETF) users.
See people seeing bitcoin more as investment and for trading. You can see El Salvador that legalized bitcoin, it can be used for payment of goods, services and salaries and businesses can accept it, but why more than 95% of El Salvadorans are still having USD in savings if compared to bitcoin. Bitcoin is not a threat to fiat.

You are not getting it from tranthidung perspective, the government sees it as a threat because with bitcoin people will have freedom to actually do things freely with their money, like cross border transactions without having to pass through the hassle of banks to change from currency to another which benefits the banks. With bitcoin many people can go into total anonymity of their funds without the preying eyes of the government.

But without the bitcoin spot ETF, people have been using bitcoin for cross border transactions since it was created.

With bitcoin spot ETF,  bitcoin ETF in the traditional market can not be used for something like that because regulation will make it not possible. Bitcoin spot ETF will only benefit the government more to track people and tax them.

[tranthidung]

So why would the government allowed it to be approved?

If bitcoin spot ETF is approved, it is just a way to draw bitcoin closer for the government to be able to tax bitcoin (ETF) users.

We are talking about Bitcoin Spot ETF in the USA., not in other nations. Globally, we already have Bitcoin Spot ETF.

In the USA. they have freedom and their nation is not governed under the only political party so that their people voice has its power. If a party does not work for their people, they will lose their power in a next President Election. Power can be changed from Democrats to Republic Parties each four years and many things can be changed in the USA.

We are not talking about nations like Russia, South Korea, China where governments are fully centralized in a single party (or only party) there.

But without the bitcoin spot ETF, people have been using bitcoin for cross border transactions since it was created.

Who can argue about that because it is fact but can you argue about interest of some institutional investors who want to invest in Bitcoin through Bitcoin Spot ETFs? It's another fact.

With bitcoin spot ETF,  bitcoin ETF in the traditional market can not be used for something like that because regulation will make it not possible. Bitcoin spot ETF will only benefit the government more to track people and tax them.

They can start with Bitcoin Spot ETF and they can change themselves, change their investment strategy. I see it is a good start like if you are working for a company that invests in Bitcoin Spot ETF. I believe you or some of your colleagues might start to do your due diligent research about Bitcoin. It's a start of something, slowly but makes sense in a long run.

[Ale88]

The news about spot Bitcoin ETF approval has been making rounds in the news recently. And it has brought so much hope that next year will be a profitable one for Bitcoiners. I have a feeling that the SEC will approve it next year because approving the ETF will also favor the SEC in some ways. It will promote centralization of the Bitcoin system which will make the sector very easy to regulate. It will be easier for this regulatory body to control the space through various policies targeted at these institutional investors.

I suspect that the reason why the SEC is delaying the approval is because they have not made enough regulatory policies to control the sector but they have intensified actions to make these laws. The clampdown on mixer services is one of the strategies of the SEC to make the Bitcoin space more centralized. And who knows if the next target might be decentralized exchanges.

Institutional investment in bitcoin will lead to an increase in the price of the currency which is good news to investors. But do you think the SEC will also benefit from the approval of Spot Bitcoin ETF?

I don't understand how or why the bitcoin ETF should help the SEC, besides eventually getting sued from some multi-billion dollar international funds since they see their applications getting rejected with different excuses every time. The SEC is supposed to protect the investors, the people (just like they did with their friend Madoff ), they are not there to obtain some direct advantage.

[TravelMug]

The news about spot Bitcoin ETF approval has been making rounds in the news recently. And it has brought so much hope that next year will be a profitable one for Bitcoiners. I have a feeling that the SEC will approve it next year because approving the ETF will also favor the SEC in some ways. It will promote centralization of the Bitcoin system which will make the sector very easy to regulate. It will be easier for this regulatory body to control the space through various policies targeted at these institutional investors.

I suspect that the reason why the SEC is delaying the approval is because they have not made enough regulatory policies to control the sector but they have intensified actions to make these laws. The clampdown on mixer services is one of the strategies of the SEC to make the Bitcoin space more centralized. And who knows if the next target might be decentralized exchanges.

Institutional investment in bitcoin will lead to an increase in the price of the currency which is good news to investors. But do you think the SEC will also benefit from the approval of Spot Bitcoin ETF?

I don't understand how or why the bitcoin ETF should help the SEC, besides eventually getting sued from some multi-billion dollar international funds since they see their applications getting rejected with different excuses every time. The SEC is supposed to protect the investors, the people (just like they did with their friend Madoff ), they are not there to obtain some direct advantage.

Yes, same here, I don't see any connections or what benefit will SEC get from approving the Bitcoin ETF. I mean it's their job to do that so obviously as a regulatory body they will have to give in to the pressure of the Spot ETF. But first they should be putting some form of protection and I think those companies have already adhere to the policies of SEC. So for me its just a matter of time before they will have to approved it. Maybe they will look good in the eyes of the investors or maybe some wall street guys. But that is their job though so they will have to perform it as mandated.

[thecodebear]

SEC is a regulatory body. Approving a BTC ETF doesn't do anything to favor them. It'll favor Wall St types, corporations, traditional investors, and the like who can more easily get exposure to Bitcoin, but it doesn't do anything for the SEC as they are a regulatory body and not a market participant.

[Fiatless]

You are not getting it from tranthidung perspective, the government sees it as a threat because with bitcoin people will have freedom to actually do things freely with their money, like cross border transactions without having to pass through the hassle of banks to change from currency to another which benefits the banks. With bitcoin many people can go into total anonymity of their funds without the preying eyes of the government.
Look at the example of the citizens of El Salvador you brought, they treat bitcoin as an investment rather than saving in fiats because of its characteristics but do the government also see this as nothing? No.

Your explanations are true but it has some exceptions. Bitcoin is a threat to the government only when it is used in its traditional state which is P2p. Immediately there is an intermediary Bitcoin ceases to promote freedom and anonymity and this is also the case of spot Bitcoin ETF.

Also i agree that this SEC approval of bitcoin ETF will definitely have an advantage they want maybe something like keeping taps on those investing into bitcoin since it will be traded on traditional exchanges they don’t need to bother much about regulating the common exchanges we have in cryptocurrency. But I don’t see this centralizing bitcoin market one bit

What you just explained is a clear definition of centralization. Any process that falls short of people buying or investing in bitcoin directly without middlemen like BlackRock, Grayscale, 21Shares & Ark, Bitwise, Wisdomtree, etc is moving towards centralization.

SEC is a regulatory body. Approving a BTC ETF doesn't do anything to favor them. It'll favor Wall St types, corporations, traditional investors, and the like who can more easily get exposure to Bitcoin, but it doesn't do anything for the SEC as they are a regulatory body and not a market participant.

SEC is a part of the government that regulates the security and exchange arm of the country. Do you think BTC ETF will help them to identify Bitcoin investors which is against the anonymity that bitcoin promotes? Do you also think that regulators can easily control institutional investors?

[adaseb]

The SEC doesn’t care what happens with the etf after it’s approved. They don’t want there to be issues like there being some broken network and leads to huge price declines which end up causing huge losses in the financial system.

One reason why they are skeptical about approving it is if there is some big problem like the chain stops and price crashes 80% in a day, it will set off margin calls everywhere and it’ll lead to institutions dumping other assets like SP500 futures which will tank that market also. Hence why it’s taking so long to get it approved.

[Zaguru12]

But without the bitcoin spot ETF, people have been using bitcoin for cross border transactions since it was created.

Now you’re misunderstanding me introducing the cross border transaction subject here, it wasn’t related in any way to bitcoin spot ETF, I was just bringing that up to emphasizes my point of why the government sees bitcoin as a rival or competitor to its traditional currency not saying the ETF approval will have an impact on that.

What you just explained is a clear definition of centralization. Any process that falls short of people buying or investing in bitcoin directly without middlemen like BlackRock, Grayscale, 21Shares & Ark, Bitwise, Wisdomtree, etc is moving towards centralization.

I can’t agree less with you because I think with investors actually going through this traditional exchanges to get bitcoin even though it is not real one will make the government Atleast have an idea of the number of its citizens actual involved into bitcoin holding. Should they need to find the details of possibly the investors, this traditional exchanges might have to provide it for them base on the rules of regulatory compliance. One thing I would say the government is bent on having a hold of or taming in this bitcoin is the fact that people can go into full anonymity. The government doesn’t want you to have that privacy. And just like regular exchanges were you submit KYC and we all say you’re no long anonymous because the government can get you through them, I also see this traditional exchanges been another backlog for the government to get details of its investors.

[laurenB7742]

It is against governmental benefits and they also see Bitcoin as one of threats for their centralized bank system so your point here is wrong.

So why would the government allowed it to be approved?

If bitcoin spot ETF is approved, it is just a way to draw bitcoin closer for the government to be able to tax bitcoin (ETF) users.

See people seeing bitcoin more as investment and for trading. You can see El Salvador that legalized bitcoin, it can be used for payment of goods, services and salaries and businesses can accept it, but why more than 95% of El Salvadorans are still having USD in savings if compared to bitcoin. Bitcoin is not a threat to fiat.

Accepting an ETF means they are treating bitcoin as an asset and not a currency, so it cannot be said that bitcoin will harm banks or fiat currencies. If bitcoin is truly a threat to fiat, banks and governments will certainly take strong measures to block bitcoin, not legalize it. Besides taxes, ETF approvals, I think the government also wants to control this asset through centralized platforms, that's what they are thinking about. They won't accept bitcoin if it doesn't bring any benefit.