XRP Lawyer John Deaton Flags SEC Rug Pull Ahead of Bitcoin ETF Approval

Renowned XRP lawyer and founder of Crypto Law US, John E. Deaton, makes headlines once more. Sharing a noteworthy post from former SEC official John Reed Stark, Deaton expresses his intrigue.

The approaching approval date of the spot Bitcoin ETF is fueling significant bullish sentiments in the market, leading Bitcoin to surpass the $44K mark after 19 months. With experts predicting a potential spot Bitcoin ETF launch between December 7-10, the excitement is palpable. However, amidst these optimistic speculations, John Reed Stark introduces an unfortunate twist to the narrative.

John Deaton Reacted On Stark’s Remarks

Legal expert Joe Carlasare noticed the recent BlackRock / iShares S-1 filing and the SEC’s claim on language suggesting Bitcoin as a potential security sparks discussions. Joe points out the SEC’s unexpected move, questioning why they would demand such language if the application was likely declined.

If the SEC classifies Bitcoin as a security, it will be challenging to trade the digital asset on exchanges. This will also result in regulatory scrutiny and Bitcoin possibly lose its current momentum.

While acknowledging the apparent randomness of a 90% likelihood of SEC approval for a Bitcoin spot ETF, John Reed Stark contemplates two plausible scenarios. He noted that CYA efforts by the SEC revealed serious concerns about the ETF’s impact on investors.

Further, he targets  SEC Chair Gensler’s unconventional approach, characterized by a lack of concern for disagreeing opinions within the SEC. Adding to the same, Stark highlights Gensler’s past actions, including suing law firm Covington and Burling and supporting controversial rules.

Reacting to Stark’s long analysis of SEC chief Gensler’s instinct, John Deaton fears a possible hurdle ahead. Stating that the Bitcoin price is racing due to the 90% possibility of spot Bitcoin approval, there also could be a hidden backlash.

Citing a probable outcome of disapproval of spot Bitcoin ETF as a regulatory “rug pull”, Deaton shed light on SEC Chief Gensler’s strict nature while dealing with Bitcoin.

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Will Spot Bitcoin ETF Get An Approval?

The remarks came at a time when Bitcoin price spiked above $44K and the market is all bullish. However, a decision is yet pending to approve spot Bitcoin ETFs.

Resharing the same post of Joe, Bloomberg Analyst James Seyffart also pointed out another possibility. Seyffart previously claimed that the chance of a spot Bitcoin approval is somewhere near December 10. He also predicted that on January 10 next year, ARK Invest’s Spot Bitcoin ETF will also get approval.

Amid all these market fluctuations, if spot Bitcoin ETF gets approval, Bitcoin could go beyond  $50K in no time. But, if the SEC disapproves all filings stating Bitcoin as a Security, it might be difficult for the BTC price to regain the same momentum.

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