Unmasking Politics Behind Delayed Bitcoin ETF Approval
Mike Belshe, the CEO of BitGo, a cryptocurrency exchange, recently shared his insights on the challenges surrounding the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
The absence of such an ETF, Belshe suggested, is primarily a result of political dynamics rather than legal impediments. This unpredictability makes it challenging to forecast when an ETF might gain approval.
This political influence, he noted, operates independently of the existing regulations and laws. It revolves around the sway of individuals within Washington, D.C.
Belshe cited an example following President Biden’s election when Senator Elizabeth Warren publicly expressed her intent to address cryptocurrency-related matters and encouraged the Biden administration to take action.
Senator Warren holds a central position in influencing SEC policies and the broader Biden administration agenda. This political influence has led to changes in regulatory approaches even when the fundamental laws remain unchanged.
Belshe emphasized the importance of establishing clear and comprehensible regulations to maintain the competitiveness of the U.S. economy and the global status of the U.S. dollar as the reserve currency.
He advocated for legislation that defines regulatory frameworks with transparent and accessible rules. Belshe underlined that even with transitions in administrations, rules should not alter unless the actual text is modified. This, he believed, should be a straightforward concept that garners support from both Democrats and Republicans.