Ex-SEC Official Calls Out Gary Gensler’s Actions To Fuel Crypto Enforcement

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As a seasoned crypto investor with a front-row seat to the rollercoaster ride that is the cryptocurrency market, I can’t help but feel a mix of emotions as I witness the leadership transition at the SEC. Having navigated through regulatory crackdowns and market volatility over the years, I’ve learned to read between the lines and discern the underlying intentions behind policy changes.

The U.S. Securities and Exchange Commission (SEC) is currently experiencing a change in leadership. Paul Atkins has been chosen as the new chair, taking over from Chairman Gary Gensler. Although Gensler still has some weeks left in his term, he has made significant appointments that some, like former SEC Internet Enforcement Director John Reed Stark, refer to as “Lame Duck” promotions. This criticism arises during ongoing suggestions for Gensler to soften his stance on the cryptocurrency industry.

The Obvious Fault in the Gary Gensler Appointments

According to John Reed Stark’s assessment, Gary Gensler appears to be steering the Securities and Exchange Commission (SEC) Enforcement Division even from beyond the grave. This is because, as pointed out by Stark, Gensler has appointed five staff members to senior positions within the Enforcement Division since leaving his role as SEC Chairman.

John Reed pointed out that while promotions aren’t inherently negative, he criticized their speed and underlying reasons. He mentioned that there are only a limited number of Senior Officer positions at the SEC headquarters, which are usually not filled within a month but over the span of a decade. To underscore the significance of these promotions, Reed explained that they are career civil service jobs, meaning the staff holding these roles are protected from dismissal, unlike those in political appointments.

Under a Surge of Swift “Lame Duck” Appointments, Securities and Exchange Commission Chairman Gary Gensler has Initiated an Unbecoming Deep-State Campaign. The Actions Taken by Gensler are not Merely Disgraceful, but Scandalous.

In simpler terms, it appears that even after his departure as SEC Chair, Gary Gensler is trying to steer the SEC Enforcement Division from beyond the grave. This is due to…

— John Reed Stark (@JohnReedStark) December 18, 2024

Furthermore, it came to light that among the recently promoted officials, four have led significant crackdowns on cryptocurrencies in previous years. Consequently, should SEC Chair nominee Paul Atkins attempt to scrutinize historical crypto enforcement efforts, these high-ranking executives could potentially thwart such investigations.

As a crypto investor reflecting on Reed Stark’s review, I believe that, given the public’s choice in electing Donald Trump, it would be inappropriate for Gary Gensler to intentionally thwart his crypto agenda.

The Mission to Clean The Swamp

In the recent U.S. election, many viewed Donald Trump’s victory as a sign of approval for the cryptocurrency market, given his labeling as the “crypto President” during his campaign. Many supporters within the cryptocurrency community endorsed his re-election bid.

Following the win, the President is determined to uphold his pledges, despite obstacles that lie ahead. He’s already making strategic appointments aimed at realizing this objective. Apart from Paul Atkins, the newly-elected President has also put forward David Sacks as the Crypto Czar, a move intended to spur policy shifts and foster growth within the cryptocurrency sector.

Leading figures in the industry are optimistic that these initial moves will foster market growth. A possible method to substantiate the “drain the swamp” initiative could be a follow-up investigation into Operation Chokepoint 2.0, as suggested by Nic Carter. This operation serves to expose how cryptocurrency companies were systematically cut off from banking services, ultimately causing the closure of banks such as Silvergate.

 

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2024-12-18 22:14