Former SEC Official Blasts Spot Bitcoin ETFs as Recipe for ‘Financial Ruin’

The U.S. Securities and Exchange Commission’s erstwhile caput of net enforcement has warned astir investing successful spot bitcoin exchange-traded funds (ETFs), which the SEC is expected to o.k. connected Wednesday. He cautioned that spot bitcoin applicants are “nothing much than an opportunistic cartel of fee-sucking billionaire fiscal behemoths who person the audacity to plan and manufacture a merchandise to let much investors to acquisition fiscal ruin and incalculable hazard – conscionable truthful they tin erstwhile again enactment their pockets with fiat.”

Stark’s Spot Bitcoin ETF Warnings

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark, blasted spot bitcoin exchange-traded funds (ETFs) successful a lengthy station connected societal media level X Sunday. Stark is presently president of cybersecurity steadfast John Reed Stark Consulting. He founded and served arsenic main of the SEC Office of Internet Enforcement for 11 years. He was besides an SEC enforcement lawyer for 15 years.

“Amid a horrifically corrupt and transgression planetary crypto-marketplace and a crypto-ecosystem formulated into a toxic speculative cocktail of mathematical computational blather, affinity fraud and the ‘Greater Fool Theory,’ the SEC volition reportedly o.k. the offering and inception of a bitcoin spot ETF. What a crock,” the erstwhile SEC authoritative opined.

He preceded to item “the cataclysm of a bitcoin spot ETF.” Firstly, helium stressed that a spot bitcoin ETF is yet different “fee-suck,” emphasizing:

Bitcoin spot ETF applicants are thing much than an opportunistic cartel of fee-sucking billionaire fiscal behemoths who person the audacity to plan and manufacture a merchandise to let much investors to acquisition fiscal ruin and incalculable hazard – conscionable truthful they tin erstwhile again enactment their pockets with fiat (and much fiat).

He further warned that cryptocurrency is “one mammoth Ponzi scheme,” noting that crypto is “more expensive, much complex, and much risky than mainstream finance.”

In addition, Stark claimed that “crypto fails arsenic a ‘financial panacea for the unbanked’ due to the fact that it’s conscionable different exemplar of ‘Predatory Inclusion’ and affinity fraud, sadly peddled to dupe the disadvantaged and disaffected.”

The erstwhile SEC authoritative besides mentioned the myriad of large crypto bankruptcies of the past respective years arsenic good arsenic Tether minting. He besides referenced the missive by Better Markets to the SEC informing of fiscal carnage and monolithic capitalist nonaccomplishment if spot bitcoin ETFs are approved.

The ex-SEC’s net enforcement main additionally described: “Bitcoin spot ETF promoters shill their empty-headed fiscal merchandise arsenic a means to usher successful a caller epoch of technological innovation.” Moreover, helium stressed: “The precise thought of a bitcoin spot ETF remains a laughable concept, not lone due to the fact that it volition make yet different Wall Street capitalist scam and fee-suck of epic proportions, but besides due to the fact that a bitcoin spot ETF is possibly the astir ‘centralized’ crypto contraption conceivable.” He added:

In the cryptoverse, marketplace manipulation is not lone rampant and tolerated, but besides encouraged. Fraud is not lone rewarded, but besides taught.

What bash you deliberation astir the warnings by erstwhile SEC net enforcement main John Reed Stark regarding spot bitcoin ETFs? Let america cognize successful the comments conception below.