SEC's final push for crypto regulation before leadership change

Former SEC official John Reed Stark has raised concerns about the ongoing regulatory actions led by SEC Chair Gary Gensler as he approaches the end of his term. 

Stark highlighted Gensler's recent maneuvers to reinforce the agency's enforcement priorities in the cryptocurrency market before a leadership transition occurs. 

He noted that former SEC Commissioner Paul Atkins is expected to take over as chair, a shift that may lead to a more pro-business stance within the agency. 

Despite this anticipated change, Stark warned that Gensler is ensuring that the SEC's regulatory framework for cryptocurrencies remains stringent. 

“It looks like former SEC Commissioner Paul Atkins will be the next SEC Chair. A phenomenal choice,” Stark remarked in a post on social media platform X. 

However, he emphasised that Gensler is not stepping back quietly; instead, he is actively positioning the agency for continued enforcement. 

“Meanwhile, current SEC Chair Gary Gensler is quietly working behind the scenes to lead the SEC from the grave,” Stark stated.

He pointed out that Gensler has promoted three experienced crypto-enforcement lawyers to senior executive roles within the SEC. 

These promotions are reportedly finalized but have not been publicly announced, which Stark described as “unprecedented.” 

He cautioned crypto firms to brace for increased regulatory scrutiny even after Gensler departs on January 20. 

“The Stark reality is that it looks like the crypto-fight is on post-January 20th,” he predicted, urging firms to prepare for heightened enforcement under Atkins’ leadership. 

Stark concluded by asserting that these newly promoted lawyers are well-equipped to maintain rigorous oversight of the cryptocurrency sector moving forward.