Will crypto regulation change after SEC crypto chief leaves?

David Hirsh, former head of the Cryptocurrency and Networks Division at the United States Securities and Exchange Commission, has left his post.

In his LinkedIn Post, he called stock trading a “team sport.” He thanked his SECOND colleagues for their cooperation and joint efforts to achieve a common goal.

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

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

He did not elaborate on details of further employment. However, he wrote that he would take a break and travel with his family.

Nine years at the SEC

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

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

Hirsch worked for the SEC for about nine years in total. He joined the organization as a staff attorney, but later headed the department responsible for crypto exchanges and decentralized finance (challenge) projects.

New role or rumors?

THE piece of money Pump.Fun project wrote that Hirsch was joining the project as head of trading. The team noted that David had concluded that his work as a regulator was no longer satisfactory and that he needed to open a new chapter.

Pump.Fun also noted that David has reportedly launched over 100 coins himself and will now be in charge of Pump.Fun’s new in-house sales department which will be responsible for launching over 1,000 coins per day. However, Hirsch later denied this statement.

The Role of Hirsch and the SEC in Crypto Regulation

Hirsch took over as head of the division in October 2022, when the crypto market was in its worst position in recent years. During this period, several major crypto companies went bankrupt at the same time, and the culmination of the crisis was the collapse of the major companies. FTX Exchange, which reduced the coin industry to local minimums during the last downtrend.

While Hirsch was head of the department, the SEC launched an aggressive enforcement campaign against several companies in the industry. Kraken, Coinbase, Binance, Rippleand many other blockchain industry giants have been under pressure.

Prosecutions against Coinbase And Binance, filed separately within a few days, gave rise to lengthy legal battles. Kraken reached a settlement agreement with the Commission after paying a $30 million fine.

What’s Next for Cryptocurrency in the United States?

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

The upcoming US presidential elections in the fall could play an important 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 are more actively interested in cryptocurrencies ahead of the US presidential election: 53% of respondents are willing to vote for a candidate who understands cryptocurrencies.

Source: Shades of grey

Today, the administration of US President Joe Biden do your best to win 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 “president of crypto” and promised to do a lot of good things for the industry if elected. He also pledged to end Biden’s war on crypto and do everything possible to secure Bitcoin’s future (BTC) and other cryptocurrencies in America.

However, Gary Gensler, who likes to call all cryptocurrencies except BTC, still serves as chairman of the SEC. Perhaps it will be possible to improve the situation after the American elections.

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