Why Are Crypto Prices Up? Former SEC Official Says There Are 2 Reasons

The U.S. Securities and Exchange Commission’s erstwhile caput of net enforcement believes that determination are 2 reasons wherefore crypto prices are up. The archetypal concerns regulatory oversight of the cryptocurrency industry, portion the 2nd revolves astir the conception of the greater fool theory. The erstwhile SEC authoritative besides dismissed the reported 90% likelihood of the SEC approving a bitcoin spot ETF as “absolutely absurd.”

Stark Explains Why Crypto Prices Are Up

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark shared his presumption connected wherefore the terms of bitcoin has rallied successful a lengthy station connected societal media level X Monday. 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.

The erstwhile SEC net enforcement main detailed:

Crypto prices spell up for 2 reasons: First, due to the fact that determination is nary regulatory oversight to forestall marketplace manipulation and second, due to the fact that radical are capable to merchantability hyped, FOMO’d and overpriced crypto to a ‘greater fool,’ whether oregon not the crypto is overvalued.

He past cautioned that erstwhile “there are nary greater fools left,” it volition each travel “crashing down.”

Continuing his disapproval of crypto, helium claimed: “For crypto: There’s nary inherent value. There’s nary currency flow. There’s nary yield. There’s nary employees. There’s nary management. There’s nary equilibrium sheet. There’s nary product. There’s nary service. There’s nary past of operations. There’s nary analytical valuations. There’s nary net reports. There’s nary proven way grounds of adoption oregon reliance. There’s nary information of immoderate benignant but for analytics relating to crypto speculation, which are inherently fishy (e.g. the reported 90% likelihood of the SEC’s support of a bitcoin spot ETF, which is perfectly absurd).”

Stark’s long-standing skepticism toward bitcoin and cryptocurrency has been unwavering. He precocious hailed the colony betwixt crypto speech Binance and U.S. authorities, including the Department of Justice (DOJ), arsenic a “huge victory” for the SEC. In August, helium predicted exponential shifts successful crypto regulations pursuing the upcoming U.S. statesmanlike election. He besides holds a dim presumption of cardinal slope integer currency (CBDC), labeling it “the astir ludicrous fiscal conception successful existence.” Earlier this year, helium cautioned that the existent regulatory crackdown connected crypto is conscionable the beginning.

In opposition to Stark’s skepticism, a increasing fig of investors, including salient figures and institutions, are embracing cryptocurrency, peculiarly bitcoin. Software quality steadfast Microstrategy (Nasdaq: MSTR) precocious disclosed that its BTC holdings person ballooned to 174,530 bitcoins, generating a staggering $1.6 cardinal successful profit. Investing fable Paul Tudor Jones has been a vocal proponent of bitcoin, predicting successful October that its terms volition importantly surpass existent levels. Renowned billionaire hedge money manager Stan Druckenmiller acknowledged that helium should ain bitcoin, contempt not presently holding any. Standard Chartered Bank has updated its bitcoin outlook, stating that the terms of BTC could scope $100,000 sooner than initially anticipated. Blackrock CEO Larry Fink echoed the increasing involvement successful cryptocurrency, stating successful October that helium sees planetary request and pent-up interest successful crypto. The world’s largest plus manager is among the companies that person filed applications with the SEC to motorboat spot bitcoin ETFs.

What bash you deliberation astir the explanations by erstwhile SEC net enforcement main John Reed Stark regarding wherefore crypto prices person surged? Let america cognize successful the comments conception below.