Regulation
David Hirsch’s Departure: A Turning Point for SEC Crypto Regulation?
TLDR
- David Hirsch, head of the crypto-asset and cyber unit of the US SEC’s Division of Enforcement, has resigned from his position after nearly 9 years with the agency.
- Hirsch announced his departure via a post on LinkedIn, expressing pride in the work done by the Crypto Assets and Cyber Unit team he led.
- During his tenure, Hirsch was involved in high-profile enforcement actions in the cryptocurrency industry, including cases against Coinbase and Solana.
- Hirsch’s resignation comes at a critical time for the SEC, which faces growing political pressure and increased scrutiny over cryptocurrency regulation.
- Following his announcement, rumors circulated that Hirsch would be joining memecoin launch platform Pump.Fun, but he quickly denied these claims, saying he has not announced his next role.
David Hirsch, a key figure in the Securities and Exchange Commission’s (SEC) enforcement efforts in the cryptocurrency industry, has resigned from his position as head of the crypto-asset and cyber unit in the Enforcement Division.
Hirsch, who has been at the SEC for nearly 9 years, announced his departure via a LinkedIn post on Monday, June 17, 2024.
In his post, Hirsch expressed pride in the work done by the Crypto Assets and Cyber Unit team that he had the privilege of leading. During his tenure, the SEC’s cryptocurrency enforcement division grew in importance as the agency grappled with the task of setting and enforcing regulations in the rapidly evolving digital landscape.
Hirsch’s leadership has seen the SEC pursue high-profile enforcement actions against cryptocurrency exchanges and decentralized finance (DeFi) projects.
Notable cases include actions against Coinbase, which the SEC said had been trading unregistered securities, and Solana.
In a recent interview, Hirsch highlighted the SEC’s jurisdiction over platforms that transact securities, regardless of whether Bitcoin and Ethereum are included in the list of targeted assets.
The timing of Hirsch’s resignation is significant, coinciding with potential regulatory changes in the cryptocurrency industry and growing political pressure on the SEC.
As the presidential election approaches, the spotlight on the agency’s actions has intensified, and Hirsch’s departure follows a pattern of key personnel changes within the SEC’s enforcement division.
While acknowledging that the SEC faces a significant litigation load and cannot prosecute every case, Hirsch defended the agency’s actions, noting that they always follow legal guidelines. He also distanced himself from comments by SEC Chairman Gary Gensler, which some interpreted as discouraging the creation of new digital products.
After his resignation announcement, rumors began circulating that Hirsch would join Solana-based memecoin launch platform Pump.Fun as head of trading.
We are excited to announce our new Head of Trading, David Hirsch!
After months of conversations with @a1lon9, David realized that his job as a regulator was no longer satisfying. He had to start a new chapter.
And what’s better than doing just what… pic.twitter.com/qJrHjNdHpD
— pump.fun (@pumpdotfun) June 17, 2024
However, Hirsch quickly denied these claims, stating that the information was false and that he had not announced his next role.
In a message to Cointelegraph, Hirsch confirmed that any claims associating him with the memecoin platform represented misinformation. “The claim is false. I haven’t announced my next role, but it won’t be with a memecoin platform,” he said.