Former SEC attorney John Reed Stark is calling for SEC Chair Gary Gensler’s resignation, and he wants SEC staff to prep a full list of crypto-related investigations, lawsuits, and regulatory moves for the new chair.
Why? So they can kill Gensler’s crypto crackdown without missing a beat. “Like it or not, the people have spoken, and their will must be respected,” Stark said.
Fox Business reporter Eleanor Terrett responded to Stark’s post, wondering if he was “trolling.” Stark said, “Nah — I’m too old for trolling (and I don’t really know what “trolling” is anyway Eleanor). But I do know that the people have spoken and should be respected. The SEC’s crypto-enforcement wave (which has been extraordinarily successful in the Courts) should stop — and the SEC should instead refer crypto-matters out to other law enforcement and regulatory agencies.”
And in his view, there’s no middle ground—crypto is either treated as a security under the ’33 Act, or it’s not, according to the ’34 Act. Trying to balance these conflicting rules? Not going to fly.
Stark went further, predicting an “SEC pause” on crypto regulation soon—maybe through a special task force or study. Given the election results, Stark thinks it’s only fair that Gensler respects what he’s calling a “landslide victory” for Big Crypto.
Trump’s plan to overhaul the SEC
Gary Gensler might want to hold on tight because Donald Trump’s camp is already scouting replacements, as promised. While Gensler’s term technically runs until 2026, Trump pledged to fire Gensler “on Day One” if he returns to office.
One of the frontrunners to take Gensler’s place is Dan Gallagher, a former SEC commissioner who’s now the Chief Legal Officer at Robinhood. Gallagher hasn’t exactly been subtle about his feelings on Gensler’s approach, which he describes as “enforcement-driven.”
In a September Congressional hearing, he criticized Gensler’s tactics, saying they’re choking innovation and damaging the United States’ standing in digital markets. According to Gallagher, Gensler’s strategy is hurting the industry.
Another contender is Paul Atkins, also a former SEC commissioner and part of Trump’s transition team back in 2016. Atkins leads Patomak Global Partners and co-chairs the Token Alliance, an organization pushing for digital asset adoption.
He agrees with the SEC’s stance that Bitcoin isn’t a security but has ripped into Gensler’s heavy-handed regulation of the industry. For Atkins, Gensler’s tactics have crossed the line.
And there’s a third name that’s gaining traction: SEC Commissioner Mark Uyeda. Reappointed in January, Uyeda has held many roles within the SEC, including advising former Chair Jay Clayton. Uyeda’s critique of Gensler’s crypto policy is sharp. He calls it a “disaster” and believes the SEC needs a total overhaul from the top down.
Gensler’s SEC record and what might change
Gensler’s time at the SEC has been defined by his aggressive regulatory moves, especially toward crypto. He’s wrangled some high-profile settlements, like the $4.5 billion deal with Terraform. Still, industry insiders argue that Gensler’s policies lack clarity, leaving crypto companies guessing about how to comply.
But it seems even he himself knows his days might be numbered. In October, he made a comment that’s hard to ignore: “Traditionally, presidents decide who chairs the SEC.”
Trump’s spokesperson Karoline Leavitt has confirmed that they haven’t finalized a decision on his replacement, but the pressure’s on, and a change at the SEC feels almost inevitable.
The financial industry has also had its fill of Gensler’s ambitious agenda. The SEC chair went after Wall Street’s core systems. He pushed for faster stock trade settlements and revamped disclosure rules, especially around special purpose acquisition companies (SPACs).
But many of these proposals hit a wall. Some were never adopted, facing fierce opposition, and others ended up in court battles. Right now, nine of Gensler’s rules are tangled in litigation, with three already vacated.
One such rule affected proxy advisors, firms that influence shareholder votes. Another tackled corporate share buybacks, aiming to set new disclosure standards. And the third would have increased disclosure requirements for hedge funds, venture capital, and private equity firms.
These cases have raised questions about the reach of the SEC’s authority, and for crypto and Wall Street alike, the rulings could have lasting implications.
There’s also talk of Hester Peirce, a Republican SEC commissioner known as “Crypto Mom,” taking over as chair. She’s been one of the few voices within the SEC pushing for a balanced approach to crypto. With Peirce at the helm, the crypto industry will almost definitely get the regulatory clarity it’s been starving for.