Regulation
Ripple faces legal limbo as SEC’s top crypto official resigns
- David Hirsch, head of cryptocurrency enforcement at the SEC, resigns after nearly a decade.
- His departure marks a significant change in the SEC’s approach to regulating cryptocurrencies.
David Hirsch, who led the U.S. Securities and Exchange Commission’s (SEC) Crypto Asset and Cyber Unit within the Division of Enforcement, has resigned after nearly nine years of service. As the CNF shares, his departure marks a significant change within the regulatory agency.
Hirsch played a crucial role in monitoring and regulating the rapidly changing evolving cryptocurrency market. Announcing his resignation in a LinkedIn post, Hirsch concluded his tenure during which he led the digital assets enforcement team and tackled numerous high-profile cases in the crypto industry.
Hirsch reflects on his mandate
In his farewell message, Hirsch expressed his gratitude for the opportunity to work on various investigations and his pride in leading the Crypto Assets and Cyber Unit team. He thanked his mentors, colleagues and partners in regulatory and law enforcement agencies for their support.
After his resignation, rumors surfaced that Hirsch had joined Pump.fun, a memecoin launch platform, as head of trading. Hirsch quickly refuted the claims in a comment on LinkedIn, calling them “false.” He also shared his future plans, mentioning his desire to take on new challenges and travel with his family before his son starts college in the fall.
The SEC’s enforcement approach under Hirsch
Under Hirsch’s leadership, the SEC Enforcement Strategy became significantly more aggressive. Unlike its previous, more measured style, which often led to settlements, the agency’s actions against digital asset companies under Hirsch often threatened their very existence, prompting many to challenge the charges in court.
Notably, Binance founder Changpeng Zhao is currently serving a four-month prison sentence in California for money laundering.
Ripple (XRP) Market Update
With Hirsch’s departure, questions are being raised about the impact on future regulation of crypto assets, including how this transition will influence SEC policies under Gary Gensler’s leadership. The crypto community is watching closely, hoping that the SEC will not compromise the decentralization inherent in blockchain technologies with its regulatory interests.
The potential shift in compliance and enforcement strategy within the crypto space could have important implications both for investors and businesses. Ripple (XRP) is currently trading at $0.4938having jumped from 1.06% during the last day and 0.48% over the past week, reflecting the market’s reaction to regulatory uncertainties. Check out the XRP price chart below.