Why is a Bitcoin ETF not stopping the US government?

Bitcoin (BTC) advocates have highlighted a clause in Valkyrie Space's Bitcoin Exchange-Traded Fund (ETF) application that allows the US government to hold the original BTC.

The clause allows U.S. federal or state regulators to revoke BTC's license, withhold, detain, or otherwise restrict access to BTC. Valkyrie is one of 13 companies applying to launch a Bitcoin ETF space in the US. If the application is accepted, the company will issue shares backed by BTC in the guardians.

How the US could kill the Bitcoin ETF

Despite new laws in the U.S. and some non-U.S. states having laws to protect crypto assets, assets in some jurisdictions are still vulnerable to seizure. Recent US seizures involve wallets used in criminal cases, but nothing prevents governments from arbitrarily extending seizure orders.

Read more: How to set up a Crypto Wallet

Bitcoin analyst VandelayBTC He said the Gold Reserve Act of 1934 reflects the government's decision. In 1933, the United States government seized citizens' gold during the Great Depression. In the year A new order passed in 1974 allowed private citizens to own gold.

Other instances of seizure include the Trading with the Enemy Act of 1917, which restricts the exchange of goods and services with enemies in time of war. Former United States President Woodrow Wilson signed an executive order to confiscate the assets of people deemed dangerous to the war effort. Bitcoin proponent Max Keizer agrees that a history of government scrutiny similarly puts BTC at risk in ETFs.

“You are not protected from government seizure and the US government plans to seize all BTC ETF Bitcoin for national security purposes.”

How the US could kill the Bitcoin ETF

The relationship between some ETF applicants and the government can be problematic. BlackRock filed to launch the ETF in June. Many believed the application meant a shift in sentiment toward crypto in Washington.

However, a 2019 report by the Campaign for Accountability found that BlackRock and its CEO, Larry Fink, pushed to relax the Dodd-Frank Act after the 2008 crisis. The report says he did it for his own benefit, emerging from the crisis as the world's largest wealth manager. Fink is said to have acquired significant political connections after the 2008 crisis.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

As a result, the BlackRock Bitcoin ETF may be more bullish for BlackRock than Bitcoin. There is concern that BlackRock may adopt crypto policies that benefit its own business rather than the crypto industry.

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