Will crypto regulation change after the SEC’s head of the crypto left?

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As a researcher with a background in finance and experience following the regulatory landscape of cryptocurrencies, I find David Hirsh’s departure from the U.S. Securities and Exchange Commission intriguing. Having spent nearly a decade at the SEC and holding a significant role in regulating digital assets, Hirsh’s influence on the industry is undeniable.

David Hirsh, who previously led the Cryptocurrency and Network Division at the United States Securities and Exchange Commission (SEC), has now departed from that role.

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In his LinkedIn update, he described securities trading as a “collective endeavor.” He expressed gratitude towards his SEC companions for their collaboration and shared success in attaining a mutual objective.

“I frequently remind people that securities enforcement is a collaborative endeavor, and this was particularly evident during my time in office. Each achievement we made was the product of teamwork and shared dedication to reaching our objectives. I’m grateful for your contributions.”

David Hirsh, the former head of the Cryptocurrency and Network Division at the SEC

He didn’t provide information about future job engagements. Instead, he mentioned intending to go on a trip with his family as a respite.

Nine years in the SEC

Hirsch served as a counsel to SEC Commissioner Caroline Crenshaw and focused on matters pertaining to law enforcement, digital currencies, and cybersecurity.

During his tenure in the SEC, he has imparted knowledge on digital asset matters and cybersecurity to regulatory colleagues and law enforcement personnel.

Hirsch spent approximately ninety months working for the Securities and Exchange Commission (SEC). Initially, he began his tenure there as a staff attorney. Later on, he progressed to lead the division responsible for overseeing crypto exchanges and decentralized finance (defi) initiatives.

New role or rumors?

As a crypto investor, I’ve noticed some exciting news from the meme coin project, Pump.Fun. They recently announced that David Hirsch will be joining their team as the Head of Trading. The team shared that Hirsch felt his role as a regulator no longer brought him fulfillment and it was time for him to embark on a new journey in the crypto world with Pump.Fun.

After several engaging discussions with @a1lon9, David recognized that his role as a regulatory officer no longer brought him satisfaction. It was time for him to embark on a fresh journey. What could be more fitting than taking up the position of our new Head of Trading?

— pump.fun (@pumpdotfun) June 17, 2024

As an analyst, I’ve come across the information that David is reportedly responsible for creating over a hundred cryptocurrencies himself. Contrarily, there have been denials from Hirsch regarding his involvement in launching 1,000 new coins daily for Pump.Fun’s internal trading department.

The role of Hirsch and the SEC in crypto regulation

I took over the division in October 2022, a time when the crypto market experienced one of its most severe downturns. Simultaneously, numerous major crypto companies succumbed to financial instability, and the tipping point was the unexpected collapse of the prominent FTX exchange. Consequently, the entire industry hit rock bottom during the latest bearish trend.

During Hirsch’s tenure as department head, the Securities and Exchange Commission (SEC) intensified its crackdown on various companies within the blockchain sector. Notable entities like Kraken, Coinbase, Binance, Ripple, among others, faced scrutiny.

The lawsuits against Coinbase and Binance, filed independently within a short timeframe, have given rise to protracted courtroom disputes. In contrast, Kraken resolved its issues with the Commission through a settlement agreement that involved a $30 million penalty payment.

What’s next for cryptocurrency in the U.S.?

The departure of Hirsch from the industry signifies the loss of a prominent figure who has publicly championed stringent regulations for cryptocurrencies. Yet, it is unclear who will take on his leadership role within the cryptocurrency sector post-departure.

The approaching American presidential elections this fall could have a substantial impact on SEC policies, as the elected president will greatly influence the direction of SEC’s cryptocurrency-related regulations in the coming years. A recent Grayscale poll revealed that U.S. citizens are increasingly engaged with cryptocurrencies prior to the election, with 53% of participants expressing their intent to support a candidate who is well-versed in digital currencies.

Will crypto regulation change after the SEC’s head of the crypto left?

As a researcher studying the Biden administration’s approach to digital asset ownership among voters, I’ve observed some noteworthy efforts. Lately, there have been significant steps taken, such as the adoption of Spot Ethereum Exchange-Traded Funds (ETFs), which indicate a clear intention to win over this demographic.

Former President Donald Trump, who was once Biden’s main rival in the elections, used to label himself as the “hidden president” and pledged to bring about numerous benefits for the crypto sector if given a chance to return to power. He also expressed his intention to put an end to the ongoing crypto crackdown initiated by President Biden and work tirelessly to secure a prosperous future for Bitcoin (BTC) and other digital currencies within the United States.

Despite current SEC Chairman Gary Gensler holding his position and distinguishing other cryptocurrencies from Bitcoin, potential progress may emerge following the US elections.

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2024-06-18 20:17