John Reed Stark once called crypto a “scourge” that empowered criminals.
The US Securities and Exchange Commission’s former Office of Internet Enforcement head was one of crypto’s most vocal sceptics.
He’s now calling on the regulator to halt all proceedings against the industry — including its appeal in its case against XRP developer Ripple.
His argument? That Donald Trump’s election victory means that the public wants the US to adopt a more crypto-friendly stance on regulations.
“As passionate as I am about the systemic risks and dire externalities created by digital assets, I am even more passionate about democracy and the need to respect election results,” Stark tweeted.
It’s a dramatic about-face from one of SEC Chair Gary Gensler’s most prominent defenders.
Stark has publicly supported the regulator’s crypto crackdown by dismissing claims of “regulation by enforcement” and urging the Department of Justice to intensify prosecutions against crypto offenders.
Under Gensler, the SEC has brought enforcement actions against companies including Consensys, Coinbase, and Kraken. Others including Immutable and OpenSea have also come under SEC investigation.
Stark has also predicted a new era for crypto under Trump. In an X Spaces in November, he declared an end to the SEC’s war on crypto given Trump’s victory.
“The SEC is not going to be bringing any fraud cases against cryptoverse participants at all in the coming years,” Stark said at the time.
Gensler’s position has drawn criticism even from fellow Democrats.
In September, Ritchie Torres, a Democrat from New York, berated the SEC chair for his vague interpretation of securities laws that potentially lumped NFTs and other cryptocurrencies with stocks and bonds.
Stark said most of those cases will peter out, except ones that involve “egregious fraud.”
He also said the SEC would seek to finalise settlements already ruled upon by presiding judges.
Stark’s comments this week come on the back of an episode of “60 Minutes,” in which Stark clashed with Ripple CEO Brad Garlinghouse over the merits of the crypto industry.
