Former SEC Official Asks Gary Gensler To Resign, Here’s Why

Gary Gensler, the current Chair of the U.S. Securities and Exchange Commission (SEC), has recently come under renewed scrutiny. Former SEC official John Reed Stark publicly suggested that Gensler should step down to allow for a new direction regarding cryptocurrency regulation. Stark’s comments follow Donald Trump’s 2024 presidential election victory, with some analysts speculating that a leadership change may soon take place.

Ex-SEC Official John Reed Stark Calls for Gensler’s Resignation

John Reed Stark, who formerly served with the SEC, has urged Chair Gary Gensler to resign. The former SEC official emphasized the need to halt ongoing crypto-related investigations and policy initiatives. Stark proposed that SEC staff compile a comprehensive list of all active cryptocurrency cases to ease the transition for any incoming chair. 

This recommendation aligns with a perceived shift in public sentiment regarding regulatory practices, John Reed Stark added, 

“Like it or not, the people have spoken and their will must be respected.”

Stark’s statement comes amid heightened debate over the SEC’s stance on digital assets. Over the past few years, the agency has implemented stringent measures on various cryptocurrency entities and has frequently engaged in litigation to enforce compliance. Stark’s call reflects a growing sentiment among industry stakeholders who seek a balanced regulation approach under new leadership.

Will Gary Gensler Resign This Week? Who’s Next Chair?

In light of the recent concerns, XRP attorney James Murphy has also predicted that Gary Gensler may step down soon. Murphy pointed out a historical pattern where SEC chairs often resign following a new presidential administration. For instance, Mary Jo White’s departure in 2016 after Trump’s first election and Jay Clayton’s exit in 2020 after Biden’s win. 

Murphy’s observations suggest that Gary Gensler may follow suit as the new administration begins.

Richard Farley, a Wall Street lawyer with extensive experience in finance, has emerged as a potential candidate for SEC Chair under the incoming administration. Farley is known for his work with financial institutions like Goldman Sachs and UBS. More so, his legal expertise aligns with a potential shift towards a more crypto-friendly SEC. Farley’s appointment would signal a policy shift, with a likely emphasis on fostering balanced approach to crypto regulation.

This potential appointment underscores Trump’s intention to take a different approach to digital assets. 

In addition, as Trump assembles his new administration, insiders reveal that the President-elect is inclined to let Jerome Powell complete his term as Federal Reserve Chair, which runs until May 2026. Although Trump has previously criticized Powell, his decision to retain Powell would ensure continuity in monetary policy. 

In recent reports, another pro-crypto figure, CEO of Cantor Fitzgerald, Howard Lutnick,  is considered a leading candidate for the role of U.S. Treasury Secretary under President-elect Donald Trump. Known for his support of Tether, Lutnick is actively lobbying for the position, intensifying speculation about Trump’s pro-Bitcoin administration.

The post Former SEC Official Asks Gary Gensler To Resign, Here’s Why appeared first on CoinGape.