SEC’s Cryptocurrency Unit Unofficially “Dead and Buried,” Says Former Official
John Reed Stark, a former SEC official, has noted that the agency’s cryptocurrency unit is now unofficially “dead and buried.”
“Stick a fork in SEC crypto-enforcement, it’s done,” he said on social media.
The SEC has now removed “crypto assets” from the official name of the unit on LinkedIn, replacing the term with “emerging technologies.”
Stark believes that the name-changing was ordered by Acting SEC Chair Mark Uyeda in order to completely dismantle crypto-related enforcement.
Changes in SEC’s Approach to Cryptocurrency
In 2022, the SEC announced a massive expansion of the “Crypto Assets and Cyber Unit” within its enforcement division. Earlier, it was simply known as the cyber unit.
David Hirsch, who spearheaded the unit in 2022, left the agency last June after a nine-year stint.
Following the departure of SEC Chair Gary Gensler, the new SEC administration swiftly moved to scale back cryptocurrency enforcement, sending top litigator Jorge Tenreiro to the agency’s IT department. The demotion was widely celebrated by crypto industry bosses, including Ripple executives.
Future of SEC’s Crypto Enforcement
“It won’t be long before the SEC’s website reflects this new name…Under any circumstance, regardless of how the SEC Acting Chair or the new SEC Chair labels or spins the eradication of SEC crypto-related enforcement, litigation, rule-making, and appeals, stick a fork in SEC crypto-enforcement, it’s done,” Stark added.
As reported by U.Today, Stark previously opined that the SEC was “done,” predicting that the incoming administration would stop targeting the cryptocurrency industry with enforcement actions.
The SEC is also expected to pause or drop some existing crypto lawsuits. Earlier this week, the agency suspended the Binance case for two months.