Regulation

Former SEC Official Asks Gary Gensler To Resign, Here’s Why

Published

1 month ago

November 13, 2024

Former Sec Official Asks Gary Gensler To Resign Heres Why.webp.webp

Gary Gensler, the current Chair of the U.S. Securities and Exchange Commission (SEC), has recently come in the lime light again. Exacting his advice via Twitter, John Reed Stark, a former official of the SEC, called on Gensler to resign so as to enable change on how the agency goes about regulating crypto. Stark’s comments come after Donald Trump won the 2024 presidential election amid opinions that the leadership could evolve soon.

Ex-SEC Official John Reed Stark Calls for Gensler’s Resignation

John Reed Stark, who formerly served with the SEC, has urged Chair Gary Gensler to resign. The former SEC official emphasized the need to halt ongoing crypto-related investigations and policy initiatives. Stark proposed that SEC staff compile a comprehensive list of all active cryptocurrency cases to ease the transition for any incoming chair.

Moreover, when Stark was asked by one of his followers if he was “trolling,” he clarified that he was simply advocating for respect of the public’s will. He noted, “I’m too old for trolling” emphasizing that his stance is rooted in a genuine belief about the role of regulatory agencies.

Additionally, Stark expressed that, given recent election results, the SEC’s crypto-enforcement efforts should be paused to let other agencies handle crypto-related oversight. This recommendation aligns with a perceived shift in public sentiment regarding regulatory practices, John Reed Stark added,

“SEC Chair Gary Gensler should respect the landslide victory of Big Crypto and the SEC staff should not partake in any sort of deep state subversion. The people have spoken, it’s crypto-caveat emptor going forward . . . and let the chips fall where they may.”

Stark made the statement in the wake of aggressive discussions about the SEC’s stand on cryptocurrencies. In the recent years, the agency has ramped up its crackdown measures on crypto entities engaging in legal battles to effect the measures. Stark’s call is in line with an emerging voice from industry players who want fair regulation under new leadership.

Will Gary Gensler Resign This Week? Who’s Next Chair?

In light of the recent concerns, XRP attorney James Murphy has also predicted that Gary Gensler may step down soon. Murphy pointed out a historical pattern where SEC chairs often resign following a new presidential administration. For instance, Mary Jo White’s departure in 2016 after Trump’s first election and Jay Clayton’s exit in 2020 after Biden’s win.

Murphy’s observations suggest that Gary Gensler may follow suit as the new administration begins.

Richard Farley, a Wall Street lawyer with extensive experience in finance, has emerged as a potential candidate for SEC Chair under the incoming administration. Farley is known for his work with financial institutions like Goldman Sachs and UBS. More so, his legal expertise aligns with a potential shift towards a more crypto-friendly SEC. Farley’s appointment would signal a policy shift, with a likely emphasis on fostering balanced approach to crypto regulation.

This potential appointment underscores Trump’s intention to take a different approach to digital assets.

In addition, as Trump assembles his new administration, insiders reveal that the President-elect is inclined to let Jerome Powell complete his term as Federal Reserve Chair, which runs until May 2026. Although Trump has previously criticized Powell, his decision to retain Powell would ensure continuity in monetary policy.

In recent reports, another pro-crypto figure, CEO of Cantor Fitzgerald, Howard Lutnick, is considered a leading candidate for the role of U.S. Treasury Secretary under President-elect Donald Trump. Known for his support of Tether, Lutnick is actively lobbying for the position, intensifying speculation about Trump’s pro-Bitcoin administration.