Will cryptocurrency regulation change after SEC chief leaves?

David Hirsh, former head of the U.S. Securities and Exchange Commission’s Cryptocurrency and Networks Division, has left his post.

In his Message on LinkedIn, called stock trading a “team sport.” He thanked his parents SEC colleagues for their cooperation and joint efforts to achieve a common goal.

“As I often say, securities enforcement is a team sport, and this has certainly been true during my tenure. Every success I have been a part of has been the direct result of collaboration and joint efforts towards a common goal. Thank you all!”

David Hirsh, former head of the SEC’s Cryptocurrency and Networking Division

He did not specify details of further employment. However, he wrote that he would be taking a break and traveling with his family.

Nine years in the SEC

Hirsch served as an advisor to SEC Commissioner Caroline Crenshaw and worked on law enforcement, digital assets and cybersecurity issues.

Throughout his career at the SEC, he has provided training on digital asset and cybersecurity issues, including to other regulators and law enforcement officials.

Hirsch worked for the SEC for about nine years total. He joined the organization as a staff attorney, but later headed the department dealing with cryptocurrency exchanges and decentralized finance (def) projects.

New role or rumors?

THE memetic currency project Pump.Fun wrote that Hirsch will join the project as head of trading. The team noted that David had concluded that his job as a regulator was no longer satisfying and that he needed to start a new chapter.

Pump.Fun also noted that David would personally launch over 100 coins and will now be responsible for Pump.Fun’s new internal business department which will be responsible for flipping over 1,000 coins per day. However, Hirsch later denied this claim.

The role of Hirsch and the SEC in regulating cryptocurrencies

Hirsch took over the leadership of the division in October 2022, when the cryptocurrency market was in its worst position in years. During that time, several large cryptocurrency companies failed at the same time, and the culmination of the crisis was the collapse of the large ones FTX exchange, which took the coin industry to local lows during the latest downtrend.

While Hirsch headed the department, the SEC began an aggressive enforcement campaign against several companies in the industry. Kraken, CoinBase, Binance, Rippleand many other blockchain industry giants have come under pressure.

The lawsuits against CoinBase AND Binance, filed separately in a matter of days, led to lengthy legal battles. Kraken reached a settlement agreement with the Commission after paying a $30 million fine.

What is the future of cryptocurrency in the United States?

Hirsch’s departure frees the industry from a significant figure who has openly advocated for strict regulation of cryptocurrencies. However, the question of who will lead the cryptocurrency industry after Hirsh’s exit remains open.

The upcoming US presidential election this fall could play a significant role in this process, and the country’s new leader will largely determine SEC policy for years to come. A survey commissioned by Grayscale showed that Americans have become more actively interested in cryptocurrencies ahead of the US presidential election: 53% of respondents are ready to vote for a candidate who understands cryptocurrencies.

Source: Greyscale

Now, the administration of US President Joe Biden he is trying his best to earn the loyalty of voters who own digital assets. Several recent initiatives, including the adoption of Ethereum spot ETFs, signal this.

Biden’s main opponent, former president Donald Trumppreviously called himself the “cryptocurrency president” and has promised to do many good things for the industry if elected. He also promised to end the war on cryptocurrencies started by Biden and to make every effort to secure the future of Bitcoin (Bitcoin) and other cryptocurrencies in America.

However, Gary Gensler, who likes to call all cryptocurrencies except BTC, still holds the position of chairman of the SEC. Perhaps it will be possible to achieve an improvement in what is happening after the American elections.

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