Former SEC Official Calls for an End to Gary Genslers Crypto Crackdown

Regulatory crackdown on cryptocurrencies expected to ease
Potential SEC leaders most supportive of crypto markets
Fewer new enforcement actions planned
Former SEC official John Reed Stark has projected a decrease in regulatory pressure on the U.S. cryptocurrency industry, attributing the shift to a recent presidential victory and potential changes in SEC leadership. Currently, Gary Gensler’s administration has placed high-profile companies like Coinbase, Kraken and Consensys under intense scrutiny, treating cryptocurrencies similar to traditional securities.
Under Gensler, the SEC has taken a hardline approach, triggering a series of high-profile enforcement actions. That strategy, however, has faced sharp criticism from members of Congress, including figures from Gensler’s own party. Rep. Ritchie Torres in September issued a scathing critique of Gensler’s approach, calling it detrimental to innovation in the industry.
With the upcoming change in chairmanship, speculation is that Gensler could move forward. Possible replacements include Republican SEC commissioners Hester Peirce and Mark Uyeda, who could take over on an interim basis. Peirce, nicknamed “Crypto Mom,” is known for her more crypto-friendly stance, unlike Gensler’s approach. “I am in no rush to become SEC chairman after my current term,” Peirce said, fueling rumors about her possible appointment.
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Thanks Don, the reason the SEC’s Director of Enforcement left before the election could be for many reasons — money, opportunity, exhaustion, etc. — always hard to say. Nothing nefarious, I can assure you. Definitely the right decision. The people have spoken and the SEC should stop its crypto enforcement efforts, take the time to study the digital asset industry, and dismiss or resolve much of the current crypto litigation. Chairman Gensler should step down in the next month or so and allow the new administration to move forward as they see fit. President Trump’s victory was a landslide and should be respected. To the moon, I guess… Good luck, my friend.
Thanks Don, the reason why the SEC Director of Enforcement left before the election could be for so many reasons — money, opportunity, exhaustion, etc. —always tough to tell. Nothing nefarious I can assure you. Definitely the right decision though. The people have spoken and…
—John Reed Stark (@JohnReedStark)
November 9, 2024
Stark notes that despite potential leadership changes, the SEC is expected to continue to pursue ongoing cases, seeking final resolutions. However, the number of enforcement actions against the cryptocurrency industry is likely to decrease significantly.
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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