A Former Official Now Says The SEC Is “Done”

November 8, 2024

Updated on November 12, 2024

A former official now says the SEC is “done”, following the echoes of retail investors and industry leaders urging Chairman Gensler to step down.

Former SEC official John Reed Stark has declared that the U.S. Securities and Exchange Commission is effectively “finished.”

He stated, “FYI, stick a fork in the SEC, it’s done,” predicting that the agency will not pursue significant cases against the cryptocurrency industry in the near future.

Stuart Alderoty, Ripple’s chief legal officer, has called for SEC Chair Gary Gensler and his team to resign voluntarily.

He remarked that if they do not step down, the next SEC Chair (once appointed) could use internal processes to remove them.

Gensler, who has faced criticism from the cryptocurrency community, is anticipated to resign early in 2025, though his official term ends on June 5.

Stark noted that Gensler cannot be forcibly removed, as the SEC is an independent agency with commissioners serving set terms.

In Trump’s address at the Bitcoin 2024 conference in Nashville, Tennessee, he stated: “On day one, I will fire Gary Gensler.”

However, it seems likely that Gensler may choose to resign soon.

Dan Gallagher, the chief legal officer at Robinhood, is considered a frontrunner to succeed Gensler, with Commissioner Hester Peirce likely stepping in as interim SEC Chair.

Hester has also been criticized by retail investors and seen as a threat to the markets given her close ties to a lobbyist group of anti-regulators.

Legal expert Jeremy Hogan suggested that the new SEC leadership would likely issue directives to drop non-fraud cryptocurrency cases.

He anticipates that ongoing legal matters will either be settled or dismissed, predicting a settlement in the Ripple case for $125 million and a dismissal of the Coinbase case.

Hogan cautioned that while these developments won’t happen immediately, they could occur before summer.

But I’m curious to know your thoughts on the matter – leave a comment down below.

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