SEC’s Crypto Mom Could Succeed Gensler in Potential Situation

The scenario that could make Gary Gensler quit, according to a former SEC official

In the opinion of John Reed Stark, a former SEC employee, the US securities regulator may radically change its stance on crypto enforcement based on a crucial election in the country in 2024.

According to a tweet from the former head of the SEC's Office of Internet Enforcement on August 13, a Republican president might significantly change the Crypto regulatory, leading to Gary Gensler, the current chairman of the SEC, perhaps resigning.

Numerous Republicans are running for office right now. Republican voters continue to like former President Donald Trump more than the next two candidates, Senator Tim Scott of South Carolina and Florida Governor Ron de Santis.

According to Stark, Gensler would most likely be replaced by "Crypto Mom"-like Hester Peirce if a Republican were to win the presidency.

Additionally, Stark called attention to how the SEC and American politics, in general, are becoming increasingly divided on how to regulate cryptocurrencies.

When Stark initially started writing about cryptocurrency in 2017, he claimed that a wide range of politicians shared the same opinion, with Maxine Waters, the secretary of state, then-President Donald Trump, and Secretary of State Hilary Clinton all concurring that it was a "dangerous and horrific plague."

The topic of cryptocurrency is become much more contentious. If elected president, Republican candidate Ron de Santis promised to outlaw central bank digital currencies (CBDCs) and stated that he intends to "protect" Bitcoin.

Elizabeth Warren, a Democrat, has made several aggressive efforts to outlaw all varieties of cryptocurrency in the nation. She even went so far as to organize an "anti-crypto army" as part of her campaign for the Senate.

Stark asserted that the SEC won't change its stance towards cryptocurrencies until a Republican occupies the White House. He predicted that the SEC will reject the current crop of spot Bitcoin ETFs for a variety of "compelling" arguments.

Stark noted that spot Bitcoin markets have a history of artificially inflated trade volumes, are heavily concentrated inside the hands of a few players, and rely on a limited set of chosen businesses to run the Bitcoin network, citing an August 8 Better Markets SEC Comment letter. Investors are allegedly "extremely vulnerable" to manipulation by dishonest individuals as a result.

Stark thinks the SEC will eventually reject all of the pending submissions, even though some financial sector giants from the realm of traditional finance, like BlackRock and Fidelity, have filed applications for a spot Bitcoin ETF product.