The former chief executive of the Ex-SEC feels that cryptocurrency prices are rising for two reasons. The first is about regulatory monitoring of the Bitcoin business, while the second is about the greater fool theory.

The former SEC official also called the SEC’s reported 90% chance of approving a bitcoin spot ETF “absolutely absurd.”

Stark explains why Ex-SEC prices are rising.

Former SEC officer John Reed Stark expressed his thoughts on why the price of Bitcoin has risen in a lengthy post on social networking platform X on Monday. Stark presently serves as the president of the cybersecurity firm John Reed Stark Consulting.

For 11 years, he developed and led the SEC’s Office of Internet Enforcement. He also worked as an SEC enforcement attorney for 15 years.

The former Ex-SEC internet enforcement chief went into detail:

Crypto prices rise for two reasons: first, there is no regulatory monitoring to prevent market manipulation, and second, people can sell hyped, FOMO’d, and expensive crypto to a ‘bigger fool,’ regardless of whether the crypto is overpriced.

He then warned that when “there are no greater fools left,” everything will come “crashing down.”

Continuing his criticism of cryptocurrency, he stated, “For cryptocurrency, there is no inherent value.” There is no money coming in. There will be no yield. There are no workers. There is no administration. There isn’t a balance sheet. There is no product available. There isn’t any service.

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There is no operational history. There are no quantitative appraisals. There are no earnings reports available.

Stark’s cynicism about Bitcoin and cryptocurrency has never wavered. He recently welcomed the deal between Binance and US authorities, including the DOJ, as a “huge victory” for the SEC.

The world’s largest asset management firm is one of the firms that has applied to the SEC to establish spot bitcoin ETFs.

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