Ex-SEC Official Slams Gary Gensler For Crypto Enforcement Move

The US Securities and Exchange Commission (SEC) is undergoing a leadership transition. Paul Atkins has been named as the successor to Chairman Gary Gensler. Despite Gensler having a few more weeks to lead the agency, he has made historic appointments, a trend former SEC Internet Enforcement Director John Reed Stark calls “Lame Duck” promotions. This backlash comes amid sustained advice that Gary Gensler needs to sheath his crackdown sword regarding the crypto industry.

The Obvious Fault in the Gary Gensler Appointments

In his analysis, John Reed Stark noted that “Gary Gensler is clearly attempting to pilot the SEC Enforcement Division from the grave.” He pointed out that the US SEC Chairman has promoted 5 staffs to Senior Officer roles at the Enforcement Division.

While promotions are not bad, he faulted the pace and the motive. According to John Reed, there are very few Senior Officer positions at the SEC headquaters. These roles are typically filled up over the course of a decade, not a month. To emphasize on the weight of these promotions, he said these roles are career civil service jobs. This makes the staff immune from removal unlike political appointments.

With A Rush of Sudden “Lame Duck” Promotions, SEC Chair Gary Gensler Has Begun a Shameful Deep State Crusade. Gensler’s Actions Are Not Just Disgraceful, They Are Scandalous.

SEC Chair Gary Gensler is clearly attempting to pilot the SEC Enforcement Division from the grave. Since…

— John Reed Stark (@JohnReedStark) December 18, 2024

Additionally, he revealed that four out of the five promoted staffs made big crypto crackdowns over the past years. This way, if nominated SEC Chair Paul Atkins tries to probe past crypto enforcement actions, these senior officers can block such moves.

To wrap up his review, Reed Stark said since the people voted for Donald Trump, then Gary Gensler should not deliberately undermine his crypto mandate.

The Mission to Clean The Swamp

Many considered the victory of Donald Trump in the last US election as a vote of confidence for the crypto sector. Having declared himself the crypto President during the campaigns, a lot of crypto voters backed his renomination bid.

With the victory, the President is now trying to keep his promises. Though challenges are ahead, he has started making important appointments to achieve this goal. Beside Paul Atkins, the President-elect has nominated David Sacks as Crypto Czar to help drive policy changes to help the industry.

Industry leaders remain hopeful that these starting gestures will help the market. One initial way to prove the clean the swamp campaign is a potential probe of Operation Chokepoint 2.0. Coined by Nic Carter, this operation highlights how crypto firms were systemically debanked, leading to the collapse of banks like Silvergate.