Gary Gensler Quietly Sets Aggressive Crypto Crackdown in Motion Before Leaving, Warns Former SEC Official
SEC Chair Gary Gensler is orchestrating a last-minute push to cement aggressive crypto enforcement, with secret promotions signaling a looming regulatory crackdown despite leadership changes.
Former SEC Official Warns of Crypto Crackdown Despite Incoming Pro-Crypto Chair
John Reed Stark, former head of the U.S. Securities and Exchange Commission’s (SEC) Office of Internet Enforcement, has highlighted significant developments within the agency that he believes could impact the cryptocurrency sector.
“SEC Chair Gensler pulls off the first reverse Saturday Night Massacre,” Stark wrote in a post on social media platform X on Wednesday, referencing Chair Gary Gensler’s recent moves.
Stark addressed the SEC’s leadership transition and the calculated steps Chair Gary Gensler is taking to solidify the agency’s enforcement priorities before leaving office.
“It looks like former SEC Commissioner Paul Atkins will be the next SEC Chair. A phenomenal choice,” he wrote. Known for his pro-business approach, Atkins is expected to bring a different focus to the SEC.
However, Stark pointed out that Gensler has been laying the groundwork to ensure the agency’s crypto enforcement efforts remain robust. “Meanwhile, current SEC Chair Gary Gensler is quietly working behind the scenes to lead the SEC from the grave,” he noted, adding:
Along these lines, Gensler just promoted three of the best, brightest, experienced and most dedicated crypto-enforcement lawyers in SEC ranks to senior executive positions—running the SEC’s Trial Unit and running the SEC’s Crypto Unit.
Although the promotions have not been formally disclosed, Stark claimed they are already finalized. He noted the secrecy surrounding the moves, stating:
“Interestingly, the SEC has not publicly announced these promotions and seems to be keeping them quiet (which is unprecedented). But these well-deserved promotions are a done deal.”
Crypto firms, Stark warned, should prepare for intensified regulatory pressure even after Gensler leaves office on Jan. 20. He predicted:
The Stark reality is that it looks like the crypto-fight is on post-January 20th. So get ready for World War III on day one Chair Atkins, because these three crypto-enforcement lawyers, who are now in charge, are some of the best in the business and will not roll over easily.