Former SEC enforcement attorney John Reed Stark, known for his harsh criticism of cryptocurrencies, has called for a sweeping change in the SEC’s approach to crypto regulation following the election of Donald Trump.
Stark called on SEC Chairman Gary Gensler to resign and advocated for a more hands-on approach, suggesting that the SEC cease its active enforcement against the crypto industry.
Stark shared his views in a statement: “SEC Chairman Gensler should resign. SEC staff should prepare a spreadsheet of all crypto-related investigations, litigation, and rulemaking so the new Chairman can quickly stop them all. Like it or not, the people have spoken and their will must be respected.”
Stark suggested that the SEC’s crypto-focused enforcement efforts, while largely successful in court, should be delegated to other regulatory and law enforcement agencies. Stark noted the regulatory inconsistencies facing the SEC, which often navigates the complex distinction of whether digital assets qualify as securities under different provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Stark signaled a potential shift towards a more crypto-friendly approach at the SEC:
“I would like to note that the SEC will ‘take a break’ to examine technological innovations in digital assets, perhaps under the auspices of a ‘task force’ or ‘special study’ regarding crypto enforcement and rulemaking. This is a fair decision given the election results.”
*This is not investment advice.