Morgan Stanley’s Bitcoin ETF Launch Could Trigger Major Regulatory Review
Chief John Reed Stark, former SEC Internet Enforcement, has cautioned Morgan Stanley against offering spot Bitcoin ETFs to clients.
Stark criticized the move, suggesting it could lead to an unprecedented SEC and FINRA examination. Last week, Morgan Stanley, a major U.S. financial institution, began providing BTC ETFs, marking a key step for institutional crypto adoption.
Stark described the decision as risky, stating that the bank’s 15,000 brokers pitching Bitcoin could invite intense regulatory scrutiny.
He noted that regulators would thoroughly review all Bitcoin transaction records, potentially uncovering violations. Stark ended his warning with a sarcastic “good luck” to the bank’s compliance team.
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Crypto Expert Predicts Massive Bull Run on the HorizonOn August 2, Morgan Stanley allowed its advisors to offer Bitcoin ETFs from BlackRock and Fidelity to wealthy clients.
Following this, Bitcoin ETFs saw significant inflows, with IShares alone adding 2,641 BTC, valued at $159.57 million, bringing its total to approximately $21 billion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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