![This scenario could spark Gary Gensler’s resignation: Former SEC official This scenario could spark Gary Gensler’s resignation: Former SEC official](https://i0.wp.com/images.cointelegraph.com/images/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDgvYjlmYjI1NzYtMTczNy00MmUwLTk0ZjMtYjE5OWZjOWI1NzVhLmpwZw==.jpg?fit=%2C&ssl=1)
The U.S. securities regulator could overhaul its approach to cryptocurrency enforcement depending on key U.S. elections in 2024, according to former SEC official John Reed Stark.
on August 13th tweetThe former head of the SEC’s Office of Internet Enforcement has predicted that a Republican president could drastically change the tide of cryptocurrency regulation, including the possible resignation of SEC Chairman Gary Gensler.
There are currently several Republican candidates in the running.former president donald trump remains The most popular candidate among Republican voters, followed by Florida Gov. Ron DeSantis and then South Carolina Sen. Tim Scott.
Stark suggested that Gensler could be replaced by the crypto-friendly Hester Pierce (often referred to as “Crypto Mom”) if a Republican wins the presidency.
Will the SEC Approve the Recent Bitcoin Spot ETF Application?
People often ask me for my opinion on whether the SEC will approve the recent flood of bitcoin spot ETF applications, which is an interesting and important question.
My view is that the current SEC will… pic.twitter.com/lPXebl03Y4
— John Reed Stark (@JohnReedStark) August 13, 2023
Pointing to Pierce’s history of dissent and opposition to many of the regulator’s crypto-related enforcements, Stark explained that if Pierce were to head the SEC:
“The world should expect that most U.S. SEC crypto-related enforcement and most crypto-related SEC sabotage will come to an abrupt end.”
Stark also drew attention to the growing polarization of cryptocurrency regulation within the SEC and broader U.S. politics.
When Stark first started writing about cryptocurrencies in 2017, he said that politicians across the spectrum shared the same views, with then-President Donald Trump, Secretary of State Hillary Clinton and Congresswoman Maxine Waters agrees that cryptocurrencies are a “dangerous and terrible plague.”
Now, cryptocurrencies have become an even more contentious issue. Republican candidate Ron DeSantis has said he plans to “protect” Bitcoin (BTC) and has vowed to ban central bank digital currencies (CBDCs) if elected president.
On the other hand, Democratic Senator Elizabeth Warren has made a series of concerted efforts to crack down on all forms of cryptocurrency in the country, even forming an “anti-crypto army” campaign as part of her Senate re-election.
Regulators are unlikely to become more friendly to cryptocurrencies until a Republican takes the Oval Office, Stark said, predicting that the SEC will reject the current set of cryptocurrencies for a range of “compelling” reasons. Spot Bitcoin ETF.
Quoted from Better Markets SEC Commentary Aug. 8 letterStark said the spot bitcoin market has a history of artificially inflated volumes, is highly concentrated in the hands of a few players, and relies on a small select group of entities to maintain the bitcoin network. This reportedly makes investors “extremely vulnerable” to manipulation by bad actors.
![](https://i0.wp.com/s3.cointelegraph.com/uploads/2023-08/4f36b401-3773-4331-b891-daa85ff3e62d.png?w=640&ssl=1)
Although many industry heavyweights from the traditional financial world, such as BlackRock and Fidelity, have filed applications for spot bitcoin ETF products, Stark believes that the SEC will eventually reject all outstanding applications.
Magazine: Blockchain games aren’t really decentralized…but that’s about to change
Svlook