Will crypto regulations change after the SEC’s former head of crypto leaves?
David Hirsh has resigned from his position as former head of Cryptocurrency and Network Division, U.S. Securities and Exchange Commission.
In his LinkedIn posting he called the trading of securities a “team game.” He thanked SEC co-workers for their collaboration and joint efforts in order to achieve a shared goal.
“As I have sid many times, enforcement of securities is a sport for teams, and this was true during my tenure. Each success that I achieved was due to the combined efforts of many people working towards a common objective. “Thanks to you all!”
David Hirsh is the former head the Cryptocurrency and Network Division of the SEC
He did not provide any details about his future employment. He wrote, however, that he was going to take a vacation and travel with family.
SEC: Nine Years in the SEC
Hirsch served as an advisor to SEC commissioner Caroline Crenshaw, working on issues relating to law enforcement, cybersecurity, and digital assets.
He has trained regulators, law enforcement officers, and other SEC employees on digital assets, cybersecurity and related issues.
Hirsch spent about nine years working for the SEC. He began his career as a lawyer, but later became the head of the department that dealt with crypto exchanges ( defi ) and projects.
Is there a new role?
The meme project Pump.Fun announced that Hirsch will join the project as its Head of Trading. The team stated that David concluded that he was not satisfied with his role as a regulator and needed to begin a new chapter.
Pump.Fun noted that David had allegedly launched more than 100 coins and would now be responsible for Pump.Fun’s new internal trading division, which will be responsible to launch over 1,000 coins each day. Hirsch denied the statement later.
The role of Hirsch in crypto regulation
Hirsch was appointed to the position of division head in October 2022 when the cryptomarket was at its lowest point in recent years. In October 2022, the crypto market was in its worst position since the early 2000s.
The SEC launched a law enforcement campaign while Hirsch was the head of the department. Kraken Binance Ripple and other industry giants were under pressure.
Legal battles have been long and drawn out over the lawsuits filed against Binance and Cobase in separate cases within days. Kraken settled with the Commission by paying a fine of $30 million.
What is the future of cryptocurrency in the U.S.
Hirsch’s departure removes from the industry a prominent figure who openly argued for strict regulation of cryptocurrency. The question remains as to who will be the next leader of the cryptocurrency industry.
The SEC will be largely influenced by the new president of the United States, who is expected to take office in the fall. Grayscale commissioned a survey that showed Americans are more interested in cryptocurrency ahead of the U.S. Presidential election. 53% of respondents said they would vote for a candidate with cryptocurrencies knowledge.
The administration of U.S. president Joe Biden now tries to earn loyalty from voters who own digital asset. This is reflected in a number of recent initiatives including the adoption of spot Ethereum ETFs.
Biden’s main opponent, former president Donald Trump (previously ), called himself the “crypto-president” and promised many good things for industry if elected. He promised to stop the war against crypto started by Biden and to do everything he could to secure the future of Bitcoin and other cryptocurrencies.
Gary Gensler who calls all cryptocurrencies, except BTC, cryptocurrencies, is still the SEC chairman. After the American elections, perhaps it will be possible for things to improve.
