A former SEC enforcement chief has called for Chairman Gary Gensler to resign and end cryptocurrency enforcement, citing Trump’s victory and declaring: “the people have spoken.”
Former SEC Enforcement Chief Wants Gary Gensler to Resign and End Crypto Cases
Former director of the U.S. Securities and Exchange Commission (SEC) Office of Internet Enforcement John Reed Stark has dramatically changed his stance on the agency’s cryptocurrency policies. Once a staunch defender of the regulator’s strict oversight, Stark is now calling for SEC Chairman Gary Gensler to resign and for the agency to halt its actions related to cryptocurrencies.
In a series of posts on the social media platform X, Stark tied his demands to the political shift following Donald Trump’s election victory. He wrote on November 13:
SEC Chairman Gensler should resign. The SEC team should prepare a spreadsheet of all investigations, lawsuits, and rulemaking related to crypto so the new chairman can quickly stop them all. Like it or not, the people have spoken, and their will must be respected.
In a November 10 post on X, Stark doubled down on his call for change, emphasizing the need for the SEC to respect the election results: “The harsh reality is that the people have spoken and the SEC should cease all crypto enforcement activities, dismiss/settle all ongoing crypto litigation, and Chairman Gensler should resign. President Trump’s victory was a resounding victory and should be respected. Over the moon, I guess…”
Speaking about the recent resignation of Gurbir S. Grewal, Director of the Division of Enforcement of the U.S. Securities and Exchange Commission (SEC), Stark dismissed rumors of fraud while reiterating his call for a reassessment of the agency’s crypto policies: “It is definitely the right decision. The people have spoken and the SEC should stop their crypto enforcement efforts, spend time studying the digital asset industry, and dismiss or settle many of the current crypto litigation,” Stark reiterated.
The change in language marks a significant shift for Stark, who has previously warned of a strong SEC enforcement stance against the cryptocurrency sector. His previous stance, which included warnings of a “regulatory assault” and support for actions against crypto companies, stands in stark contrast to his current call for a halt to crypto-related litigation.
Gensler recently made a statement that sparked speculation about his possible resignation. Many believe he could resign before President-elect Donald Trump takes office, as Trump has said he will fire Gensler on his first day in office. Trump has criticized Gensler for his strict enforcement of cryptocurrency regulations and pledged to make the United States a global hub for cryptocurrencies, even proposing to adopt bitcoin as a national reserve.