Does SEC’s Enforcement Chief’s Resignation Signal an End to the ‘War on Crypto’?

David Hirsch, the chief of the SEC’s Enforcement Division’s Crypto Asset and Cyber unit, has resigned, sparking a wave of reactions from the crypto community.

Community Reactions

  • David Hirsch's Departure: Hirsch announced his resignation on LinkedIn, reflecting on his nearly 10-year tenure at the SEC, where he handled complex and challenging investigations.

  • Crypto Community's Response: The reactions were mixed. Viktor Bunin, a protocol specialist at Coinbase, urged the industry not to hire Hirsch due to his enforcement actions. Conversely, Solana's memecoin platform, pump.fun, humorously claimed they had hired Hirsch, a statement Hirsch later confirmed as false.

Implications for the SEC and Crypto Regulation

  • Market Commentary: Crypto YouTuber Paul Barron speculated that Hirsch’s resignation might indicate a shift in the SEC’s influence over the crypto sector, especially as regulatory clarity increases.

  • Legislative Developments: The FIT21 Act, recently passed by the U.S. House of Representatives, aims to reduce the SEC’s power over crypto, shifting oversight to the CFTC (Commodity and Futures Trading Commission).

Future Outlook

While some view Hirsch’s resignation as a potential end to the SEC’s stringent crypto enforcement, the true impact will depend on his successor, who has not been announced yet.

Disclaimer: This article does not constitute investment advice. All trading and investment decisions involve risk, and readers should conduct their own research before making any decisions.

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