Departure of David Hirsch: a turning point for the SEC’s crypto regulation?

TLDR

1. David Hirsch, head of the crypto assets and cybersecurity unit of the US SEC’s Division of Enforcement, has resigned from his position after nearly 9 years with the agency.
2. Hirsch announced his departure via a LinkedIn post, expressing pride in the work done by the Crypto Assets and Cyber ​​Unit team he led.
3. During his tenure, Hirsch was involved in high-profile cryptocurrency enforcement actions, including cases against Coinbase and Solana.
4. Hirsch’s resignation comes at a critical time for the SEC as it faces growing political pressure and increased scrutiny over cryptocurrency regulation.
5. Following his announcement, rumors swirled that Hirsch had joined memecoin launch platform Pump.Fun, but he quickly denied these claims, stating that he had not announced his next role.

David Hirsch, a key figure in the U.S. Securities and Exchange Commission’s (SEC) cryptocurrency enforcement efforts, has resigned as head of the Crypto Assets and Cybersecurity Unit at the within the Division of Enforcement.

Hirsch, who had been with the SEC for almost 9 years, announced his departure via a LinkedIn post on Monday, June 17, 2024.

In his message, Hirsch expressed his pride in the work accomplished by the Crypto Assets and Cyber ​​Unit team that he had the privilege of leading. During his tenure, the SEC’s Crypto Enforcement Division grew in importance as the agency grappled with the task of defining and enforcing regulations in a rapidly evolving digital landscape.

Hirsch’s leadership has seen the SEC pursue wide-ranging enforcement actions against cryptocurrency exchanges and decentralized finance (DeFi) projects.

Notable cases included actions against Coinbase, which the SEC said had traded in unregistered securities, and Solana.

In a recent interview, Hirsch emphasized the SEC’s jurisdiction over platforms transacting securities, regardless of whether Bitcoin and Ethereum are included in the list of targeted assets.

The timing of Hirsch’s resignation is significant, as it coincides with potential regulatory changes in the crypto space and increasing political pressure on the SEC.

As the presidential election approaches, attention to the agency’s actions has intensified, and Hirsch’s departure follows a series of key personnel changes within the SEC’s enforcement division.

While Hirsch acknowledged that the SEC faces a significant volume of litigation and cannot pursue every case, he defended the agency’s actions, emphasizing that they still met legal guidelines. He also distanced himself from comments by SEC Chairman Gary Gensler, which some interpreted as discouraging the creation of new digital products.

Following the announcement of his resignation, rumors began circulating that Hirsch had joined Pump.Fun, the Solana-based memecoin launch platform, as head of trading.

However, Hirsch quickly denied the claims, saying 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 constituted misinformation. “This statement is false. I haven’t announced my next role, but it’s not with a memecoin platform,” he said.

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