Former SEC Official Anticipates Exponential Shifts in Crypto Regulations After Election Day

The U.S. Securities and Exchange Commission’s erstwhile caput of net enforcement has outlined imaginable changes successful the U.S. and astatine the SEC that could person affirmative impacts connected the crypto industry, including the support of spot bitcoin exchange-traded funds (ETFs). The changes could see a Republican president being elected, SEC Chairman Gary Gensler resigning, and “crypto mom” Hester Peirce being appointed arsenic the acting SEC Chair.

Possible Changes astatine SEC That Could Benefit Crypto Industry

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark highlighted imaginable changes that could payment the crypto industry, including the support of spot bitcoin exchange-traded funds (ETFs), successful a lengthy tweet connected Sunday. Stark is presently president of cybersecurity steadfast John Reed Stark Consulting. He founded and served arsenic main of the SEC Office of Internet Enforcement for 11 years. He was besides an SEC enforcement lawyer for 15 years.

A fig of companies successful the U.S. are seeking SEC support to motorboat a spot bitcoin ETF, including Blackrock, the world’s largest plus manager. However, the SEC has not approved immoderate spot crypto ETFs truthful far. Stark opined:

My instrumentality is that the existent SEC volition NOT o.k. a bitcoin spot ETF exertion for a scope of compelling reasons.

The erstwhile SEC authoritative referenced Better Markets, a non-partisan autarkic nonprofit enactment advocating for economical security, which outlined connected Aug. 9 wherefore the SEC should cull spot bitcoin ETF filings.

However, Stark believes that the SEC could acquisition changes that payment the crypto manufacture if a Republican is elected president of the United States successful 2024. The 2024 U.S. elections are scheduled to beryllium held connected Nov. 5. He stated:

The crypto-regulatory tides could displacement exponentially aft Election Day.

He explained that nether a Republican U.S. president, the SEC’s crypto-enforcement efforts would apt “decrease significantly.” He clarified that this could impact focusing much connected fraud cases, “shifting efforts distant from charging axenic registration violations (such arsenic the nonaccomplishment of a crypto-trading level to registry arsenic an exchange, broker-dealer and clearing firm).” In addition, Stark expects the caller SEC to “become acold much receptive to approving a bitcoin spot ETF and acold much apt to instrumentality different important crypto-friendly regulatory actions.”

The erstwhile SEC enforcement authoritative proceeded to explicate that erstwhile a caller U.S. president is elected, the SEC president typically resigns and the caller president presumption is usually confirmed and filled successful a span of 3 to 4 months aft Inauguration Day. He continued:

Hence, should a Republican get elected President, Chair Gensler would apt resign and the elder Republican appointed SEC Commissioner (in this lawsuit famed ‘crypto-mom’ Hester Peirce) would perchance go acting Chair.

Stark noted that if Peirce “becomes acting Chair of the SEC, fixed her lengthy way grounds of dissent and absorption to astir crypto-related SEC actions, the satellite should expect that astir U.S. SEC crypto-related enforcement and astir crypto-related SEC disruption would grind to a screeching halt.”

Last week, Stark warned that the crypto regulatory onslaught volition never end nether the existent SEC.

What bash you deliberation astir the statements by erstwhile SEC authoritative John Reed Stark? Let america cognize successful the comments conception below.