Famous Bitcoin Enemy Expert Gave Good News: “SEC’s War Against Cryptocurrencies is Over”

According to former SEC official John Reed Stark, in the United States to cryptocurrencies The era of intense scrutiny and regulatory action may be coming to an end.

Following Donald Trump’s recent victory in the US presidential election, Stark declared that the SEC’s so-called “war on crypto” was likely to end under new political leadership.

During an X Spaces session on Thursday, Stark, who previously led the SEC’s Office of Internet Enforcement, said the agency is unlikely to file more fraud lawsuits against participants in the cryptocurrency industry under Trump’s administration. This shift would mark a significant shift from the policies of current SEC Chairman Gary Gensler, whose tenure was marked by aggressive enforcement actions.

The SEC, under Gensler, has initiated lawsuits and investigations against major US crypto organizations such as ConsenSys, Coinbase and Kraken for alleged violations of federal securities laws. Gensler argued that cryptocurrency firms should be regulated similarly to traditional securities markets, leading to wide-ranging enforcement actions. These policies have been controversial, drawing criticism not only from the crypto industry but also from lawmakers, including Democrats like New York Rep. Ritchie Torres, who accused Gensler of overreaching.

Stark predicts that only cases involving “egregious fraud” will continue and that the SEC will instead focus on resolving cases that judges have already ruled on.

Gensler’s future in the SEC remains uncertain. Trump had publicly said he would fire Gensler on his first day in office, but Stark believes a direct dismissal may not be necessary. Trump could instead appoint one of the Republican SEC Commissioners as acting chairman, demoting Gensler to the de facto commissioner role.

Speculation surrounding potential candidates for the SEC’s top role suggests veteran Republican SEC Commissioner Hester Peirce is a popular favorite. Known as the “Crypto Mom,” Peirce is well-respected in the crypto industry for her relatively soft stance on regulation. However, he has previously indicated that he may not seek a long-term presidential position when his term ends next year.

Other candidates include Mark Uyeda, who has criticized the SEC’s approach under Gensler and called it harmful to the industry, and Dan Gallagher, Robinhood’s chief legal officer and a former SEC commissioner. Former SEC Commissioner Paul Atkins and former CFTC Chairman Chris Giancarlo have also been mentioned as potential candidates.

*This is not investment advice.