The post Morgan Stanley Bitcoin Move Is A ‘Death Wish’: Ex-SEC Official appeared on BitcoinEthereumNews.com.

Ex-SEC official John Reed Stark has slammed American banking giant Morgan Stanley’s decision to grant its brokers access to Bitcoin ETF. While many proponents in the digital currency ecosystem consider the bank’s move a positive one, John Reed Stark sees it as a “death wish.” Why Morgan Stanley Bitcoin Move is a Bad Idea In his recent post on X, the ex-SEC official believes the bank’s 15,000 registered brokers are now exposed to potential regulatory surveillance. John Reed expressed optimism about the likelihood of both the SEC and FINRA going after the bank’s affiliated broker based on his experience. Morgan Stanley’s Death Wish I worked in the SEC Enforcement Division for almost 20 years, the last 11 as Chief of the SEC’s Office of Internet Enforcement, and I have taught advanced securities regulation courses at both Georgetown and Duke Law Schools for 20 years — and my… — John Reed Stark (@JohnReedStark) August 9, 2024 Per his projections, he believes the Morgan Stanley Bitcoin move is a voluntary invitation for probe. With the SEC known for its regulatory crackdown style, the ex-SEC official is convinced the regulators will take no chances. “SEC and FINRA compliance staff and SEC and FINRA enforcement staff will have instantaneous access to every single record, document, email, text, voicemail, phone conversation, etc. pertaining to Morgan Stanley’s bitcoin sales to retail investors,” he said in the post. Since spot Bitcoin ETF products launched in January, the demand from Wall Street has gone through the roof. Many institutional investors are making demands for this product, forcing legacy banks to adjust their stance. While different banks have trialed several blockchain and crypto products over the years, the Bitcoin and Ethereum ETF bets introduced extra legitimacy to the product stark. While John Reed did not imply the bank’s brokers…

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Filed under: News - @ August 10, 2024 12:08 pm