Former SEC Official Predicts Crypto Crime Will Explode

As a seasoned researcher with over two decades of experience in financial regulation, I have witnessed numerous changes in leadership and their impact on the regulatory landscape. The upcoming change at the SEC, led by the departure of Gary Gensler, is no exception.


It’s been forecasted by former U.S. Securities and Exchange Commission Chair, John Reed Stark, that there will be a significant surge in cryptocurrency-related crimes following an upcoming leadership transition within the agency.

Stark, a frequent critic of the cryptocurrency sector, has acknowledged that the regulatory body’s attempts to govern the industry through enforcement actions are essentially finished. According to U.Today, he predicts the agency will abandon all non-fraud related crypto cases, including lawsuits against Binance and Coinbase.

According to U.Today’s report, several strong candidates have surfaced in the competition to take over from SEC Chair Gary Gensler. Among these candidates are Paul Atkins, who leads Patomak Global Partners, Daniel Gallagher, legal chief at Robinhood, Brad Bondi of Paul Hastings, Bob Stebbins, a partner at Willkie Farr & Gallagher, and others.

As Stark suggests, it seems highly unlikely for Stebbins, who was a former general counsel at the SEC and approved the Ripple lawsuit during Jay Clayton’s tenure as chair, to lead the SEC. This is largely due to the significant influence wielded by the cryptocurrency industry, which may not support Stebbins’ nomination for the SEC Chair position. Stark stated that he believes this powerful sector would have a substantial impact on the selection process and finding it hard to envision them supporting Bob Stebbins as the SEC Chair.

As a crypto investor, I’ve been closely watching the news about who might replace the current SEC Chair, but it’s still uncertain when Gensler will step down. Yet, his latest statements seem to suggest that an announcement could be coming soon, which has sparked a surge in XRP prices.

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2024-11-17 14:55