Former SEC official: Gensler may be replaced by "encryption mother" Peirce

Author: TOM MITCHELHILL, COINTELEGRAPH; Compiler: Songxue, Jinse Finance

** Former SEC official John Reed Stark said the U.S. securities regulator could overhaul its approach to cryptocurrency enforcement depending on key U.S. elections in 2024. **

In a tweet on Aug. 13, the former head of the SEC's Office of Internet Enforcement predicted that the **Republican Party could drastically change the direction of cryptocurrency regulation, including the possible appointment of a crypto-friendly commissioner Pierce (**Hester Peirce) **), to replace Gary Gensler as chairman of the agency. **

There are currently several Republican candidates in the running. Former President Donald Trump remains in office.

Stark said that if a Republican wins the presidency, Gensler could be replaced by Pierce — often referred to as “Crypto Mom.” **

Stark noted that Pierce dissents and opposes much of the regulator's crypto-related enforcement, explaining that if Pierce becomes head of the SEC: "The world should expect most of the SEC's crypto-related enforcement. And most crypto-related SEC interference will come to a screeching halt."

Stark also drew attention to the growing polarization of crypto regulation within the SEC and 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 de Santis has said he plans to "protect" bitcoin 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-cryptocurrency army” as part of her Senate re-election Activity.

Stark said that regulators are unlikely to become more friendly to cryptocurrencies until the Republicans enter the Oval Office, predicting that the SEC will reject the current regulation for a number of "compelling" reasons. A range of spot bitcoin ETFs. **

Citing the Better Markets SEC comment letter on August 8, Stark stated that the spot bitcoin market has a history of artificially inflated trading volumes, is highly concentrated in the hands of a small number of participants, and relies on a small number of select entities to maintain the bitcoin network. This reportedly makes investors “extremely vulnerable” to manipulation by bad actors.

Letter from Better Markets to the SEC recommending rejection of spot bitcoin ETF products. Source: Better Markets

**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. **