David Hirsch, head of the U.S. Securities and Exchange Commission’s (SEC) cryptocurrency enforcement division has stepped down after almost a decade, according to an announcement on LinkedIn today.
The executive’s departure follows that of Ladan Stewart, another SEC lawyer who left for a private firm after eight years.
“During that time I had the opportunity to work on more complex, challenging investigations and issues than I ever imagined when I joined the agency as a staff attorney in the Fort Worth Regional Office. I’m particularly proud of the historic work done by the Crypto Assets and Cyber Unit team I had the privilege to lead,” said Hirsch in the post, adding that he will take a well-deserved break and spend time with his family before his son heads to college.
The SEC is Making The US Uncompetitive
Hirsch said leaving the SEC is difficult, but he is excited about new challenges. His future plans, however, are unknown.
Shortly after news of Hirsch’s departure surfaced, rumours circulated that the SEC’s former executive has taken on a new role as Chief Trading Officer at Pump.fun, a token issuance platform for many memecoin projects on Solana and Ethereum’s Layer-2 Blast.
The project tweeted to confirm Hirsch’s decision to join Pump.fun, but Hirsch has not officially confirmed the news.
During his tenure, Hirsch, alongside SEC Chair Gary Gensler, played a key role in regulating the cryptocurrency industry. Both Hirsch and Gensler have been critical of the cryptocurrency industry, particularly Decentralized Finance (DeFi) and projects seen as violating securities laws.
Hirsch has made tough statements in the past targeting the cryptocurrency industry. Speaking at the Securities Enforcement Forum in Chicago, he warned that the SEC has been constantly observing DeFi exchanges and projects that it considers to be in violation of securities laws, similar to Coinbase and Binance.
Additionally, the regulator noted that sanctions apply to more than two entities and are not limited to these two cases. In addition to brokers and dealers, clearing agencies and anyone else who encroaches upon the SEC’s jurisdiction are now under scrutiny by the SEC. The enforcement department will also pay attention to DeFi projects.
Other Nations Will Thrive
A number of entities focusing on decentralized finance (DeFi) and cryptocurrency exchanges have been under the SEC’s radar, including Ripple, Binance, and Coinbase. Ripple partly won the legal lawsuit last year after a judge ruled that XRP, Ripple’s native token, was not a security in secondary market transactions.
Binance and Coinbase are still facing SEC lawsuits. Binance’s recent settlement with U.S. regulators did not include the SEC.
Following Hirsch’s statement, earlier this year, Uniswap Labs, the team behind the leading DeFi exchange Uniswap, announced it received a Wells Notice from the SEC.
Cryptocurrency is a hot topic not only among crypto investors but also increasingly in U.S. politics leading up to the midterm elections. The SEC, with Chairman Gary Gensler at the centre of the debate, has long been known as a source of tension for crypto advocates.
Although the SEC recently approved spot Ethereum ETFs, many cryptocurrency members believe the decision was politically motivated in anticipation of the November election results, given Gensler’s history of pushing back against the industry.
Some sources believe that the SEC’s approval of Ethereum spot ETFs could bolster Joe Biden’s Democratic Party against Donald Trump, a strong Republican candidate. Trump has expressed his supportive stance toward the cryptocurrency industry over the past few months.
Hirsch’s departure from the SEC follows another high-profile exit. In February 2024, Ladan Stewart, a lawyer known for her work on high-profile cases against Ripple and Coinbase, left the agency’s Enforcement Division after eight years to join White & Case LLP as a partner.
The post SEC’s Crypto Enforcement Chief Steps Down Amid Crypto Regulation Debate appeared first on Blockonomi.
from Blockonomi https://ift.tt/FenEsP0