Will crypto regulation change after the SEC’s head of the crypto left?

David Hirsh, former head of the U.S. Securities and Exchange Commission’s Cryptocurrency and Networks Division, has resigned.

He described securities trading as a “team sport” in his LinkedIn post. He thanked his SEC colleagues for their cooperation and joint efforts to achieve a common goal.

“As I have often said, 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 joint efforts towards a common goal. Thanks everyone!”

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

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

Nine years in the SEC

Hirsch was counsel to SEC Commissioner Caroline Crenshaw and worked on matters related to law enforcement, digital assets and cybersecurity.

Throughout his SEC career, he has provided training on topics related to digital assets and cybersecurity, including to other regulatory agencies and law enforcement officials.

In total, Hirsch worked for the SEC for nearly nine years. He joined the organization as a staff attorney but later became head of the department dealing with crypto exchanges and decentralized finance (defi) projects.

New role or rumors?

Meme coin project Pump.Fun wrote that Hirsch will join the project as Commercial Manager. The team concluded that David’s job as regulator was no longer satisfactory and he needed to turn over a new leaf.

We are excited to announce our new Commercial Manager, David Hirsch!

After months of negotiations @a1lon9David realized that his job as a regulator was no longer fulfilling. He needed to turn a new page.

And what could be better than doing what you do? pic.twitter.com/qJrHjNdHpD

— pump.entertainment (@pumpdotfun) June 17, 2024

Pump.Fun also stated that David had allegedly launched over 100 coins himself and that Pump.Fun’s new internal trading department will now be responsible for releasing over 1,000 coins per day. However, Hirsch later denied this statement.

Hirsch and the SEC’s role in crypto regulation

Hirsch took charge of the division in October 2022, when the crypto market was at its worst in recent years. During this period, many major crypto companies went bankrupt simultaneously, and the climax of the crisis was the collapse of the major FTX exchange, which reduced the cryptocurrency industry to local minimums during the last bearish trend.

While Hirsch served as head of the department, the SEC launched an aggressive law enforcement campaign against many companies in the industry. Kraken, Coinbase, Binance, Ripple and many other blockchain industry giants have come under pressure.

Separate lawsuits filed against Coinbase and Binance within a few days led to long legal battles. Kraken reached a settlement agreement with the Commission after paying a $30 million fine.

What’s next for cryptocurrency in the US?

Hirsch’s departure rid the industry of a prominent figure who had openly advocated for strict cryptocurrency regulation. However, the question of who will lead the cryptocurrency industry after Hirsh leaves is still open.

The presidential elections to be held in America in the fall may play an important role in this process, and the country’s new leader will largely determine the SEC’s policy in the coming years. A survey commissioned by Grayscale showed that Americans are becoming more actively interested in cryptocurrencies ahead of the US presidential election; 53% of survey respondents are ready to vote for a candidate who understands cryptocurrencies.

Source: Grayscale

Now the administration of US President Joe Biden is doing its best to win the loyalty of voters who own digital assets. Many recent initiatives, including the adoption of Spot Ethereum ETFs, signal this.

Biden’s primary rival, former President Donald Trump, has previously described himself as the “cryptocurrency president” and promised to do many good things for the industry if elected. He also promised to end the war against crypto that Biden started and make every effort to secure the future of Bitcoin (BTC) and other cryptocurrencies in America.

However, Gary Gensler, who likes to search for all cryptocurrencies other than BTC, still serves as SEC Chairman. Perhaps it will be possible to improve what is happening after the American elections.