John Reed Stark, a former Securities and Exchange Commission official, warned Morgan Stanley against offering clients a spot Bitcoin ETF.
Cool criticized The move suggests it could lead to unprecedented scrutiny from the SEC and FINRA. Last week, Morgan Stanley, a major U.S. financial institution, began offering a BTC ETF, marking a major step for institutional adoption of cryptocurrencies.
Stark described the decision as risky and referred to the bank’s 15,000 broker offer Bitcoin Investments may require intensive regulatory review.
He pointed out that regulators will thoroughly review all BTC transaction records and may uncover violations. Stark ended his warning with the sarcastic “good luck” from the bank’s compliance team.
On August 2, Morgan Stanley allowed its advisors to offer Bitcoin ETFs from BlackRock and Fidelity to wealthy clients.
As a result, BTC ETFs saw a significant inflow of funds, with IShares alone adding 2,641 BTC worth $159.57 million, bringing their total value to approximately $21 billion.
