Amidst murmurs of discontent and a potential shake-up within the U.S. Securities and Exchange Commission’s (SEC) crypto and cyber division, seasoned enforcement attorneys are reportedly eyeing the exit door.
Fox Business correspondent Charles Gasparino sounded the alarm on February 9, pointing to a surge in resumes circulating among current SEC staff, indicating a wave of departures could be on the horizon.
The backdrop to this staffing uncertainty is a growing sentiment within the crypto industry that SEC Chair Gary Gensler’s approach is overly stringent, particularly towards companies operating in decentralized finance (DeFi), where traditional securities laws are being applied with contentious results.
Adding fuel to the fire, Fox Business journalist Eleanor Terrett revealed the SEC’s push for a record-breaking $2.4 billion funding request, with plans to bolster its ranks by 170 positions, including within the crypto unit.
However, the prospect of political shifts looms large. Analysts speculate that if President Joe Biden secures a second term in the 2024 election, Gensler’s tenure could extend to 2026. Conversely, a victory for former President Donald Trump or another Republican candidate could steer the SEC in a different direction.
The intertwining of politics with regulatory oversight raises concerns about the Commission’s future impartiality and effectiveness in regulating the crypto industry.
Moreover, questions arise about whether Gensler will follow the tradition of stepping down with a change in presidential leadership. Speculation abounds regarding his potential resistance to resignation, given the absence of established precedent for removing an SEC commissioner “for cause” during a transition of power.
The outcome of this political chess game holds significant implications for the crypto sector, with the potential for regulatory turbulence on the horizon.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.