Russia is currently testing a system to block VPN users from accessing the global internet. This new system has shown the ability to restrict even virtual private networks, marking a significant escalation in Russia's efforts to establish a 'sovereign internet.' The government has already trialed shutting down internet access in Dagestan, with reports of disruptions lasting 24 hours and extending to other regions. Local residents experienced issues with popular services like YouTube and Telegram. The Russian government plans to invest heavily in enhancing its web traffic censorship system, known as TSPU, which allows for sophisticated internet control. This move aligns with a global trend of increasing internet restrictions in various countries. Russia's approach includes deep packet inspection, traffic rerouting, and targeting VPN services. Despite facing technical challenges, Russia aims to achieve internet isolation similar to China and North Korea, although experts remain skeptical about its feasibility. Read more AI-generated news on: https://app.chaingpt.org/news

Just before SEC Chair Gary Gensler takes his final bow, he quietly prepares the way for more concerted regulatory action within the cryptocurrency space. Will his tenure’s final efforts prove to be long-haul efforts? Sources say that he is already setting the stage for a series of crypto crackdowns before he dashes out of office.

Gensler’s Alleged Moves Ahead of Departure 

Gary Gensler, current SEC chair, has been a  rather contentious figure in crypto. Known for his tough approach to regulation, he is putting his enforcement in place quietly before he leaves on January 20.

According to John Reed Stark, former head of the SEC’s Office of Internet Enforcement, Gensler has allegedly been quietly promoting key people inside the SEC. The moves are meant to ensure the agency’s crypto stance will live on, if not prosper, under new leadership.

 “Gensler is working behind the scenes to lead the SEC from the grave,” said Stark in a social media post, highlighting the strategic nature of these promotions.

The promoted individuals, some of the most experienced crypto-enforcement lawyers at the SEC, will head the Crypto Unit and Trial Unit.

New Leadership and What It Means

Gensler’s exit sets up Paul Atkins, a pro-business former SEC Commissioner, for the Chair role. Atkins is generally more business-friendly and by extension, crypto-friendly.

Gary Gensler Sets Aggressive Crypto Crackdown in Motion Before SEC Departure

Atkins’ appointment may mean the overall approach of the SEC will change, but Stark says the work done under Gensler will prevent any big policy shift.

“Crypto firms should brace themselves for intensified scrutiny even after Gensler’s departure,” said Stark.

Secret Promotions Mean More Aggression

The secrecy around the promotions has caused many to wonder what’s going on inside the SEC. Normally, changes in leadership are announced publicly. However, Gensler’s stealth approach suggests a deliberate effort to preserve his regulatory agenda.  

Stark called these moves the “reverse Saturday Night Massacre,” a term used to describe previous political power grabs. By promoting crypto-enforcement personnel, Gary Gensler is putting his stamp on history and keeping the SEC’s crypto momentum going.

“These promotions, though not publicly announced, are finalized and mark a significant escalation in crypto enforcement,” said Stark.

What This Means for Crypto

Crypto has been in the SEC’s sights and Gensler has been behind several high profile enforcement actions since he got to the SEC. Under his leadership, the SEC has gone after the big players for alleged violations including unregistered securities offerings and non-compliance with existing rules.

Gary Gensler Sets Aggressive Crypto Crackdown in Motion Before SEC Departure

Many in the industry thought there would be some kind of regulatory relief after Gensler leaves but now it looks like it’s far from over, the crypto enforcement at the SEC might just be getting started.

Stark went so far as to say there could be “World War III” after January 20 as the newly promoted crypto-enforcement team is unlikely to back down.

“These lawyers are some of the best in the business, and they will continue to pursue crypto firms aggressively,” he said.

Conclusion 

Gary Gensler’s alleged final actions as SEC Chair reflect his determination to cement a legacy of rigorous crypto enforcement. While a new Chair may bring a different focus; the groundwork laid by Gary Gensler ensures that the crypto industry will face continued scrutiny.  

As the regulatory landscape shifts, crypto companies will have to weather the storm. 

The BIT Journal is available around the clock, providing you with updated information about the state of the crypto world. Follow us on Twitter and LinkedIn, and join our Telegram channel.