Former SEC enforcement attorney John Reed Stark, previously a vocal critic of cryptocurrencies, has called for SEC Chair Gary Gensler’s resignation following Donald Trump’s presidential election victory. Stark, known for his hawkish stance on digital assets, now argues that the election results mandate a shift in the SEC’s approach to crypto regulation.
In a recent statement, Stark urged the SEC staff to compile a comprehensive list of all ongoing crypto-related investigations, litigation, and rule-making initiatives, so that a new Chair can “swiftly grind them all to a screeching halt.” He asserted that “the people have spoken and their will must be respected,” suggesting that the election outcome signifies public support for a less stringent regulatory environment for cryptocurrencies.
Stark advocated for an end to the SEC’s “extraordinarily successful” crypto-enforcement wave and proposed referring crypto matters to other law enforcement and regulatory agencies. He highlighted the inherent contradiction in the SEC’s current position, which treats digital assets as securities for enforcement purposes under the Securities Act of 1933, but not for registration requirements under the Securities Exchange Act of 1934.
Predicting a forthcoming “pause” in SEC crypto-enforcement and rule-making, potentially disguised as a “task force” or “special study,” Stark stated this would be “fair, given the election results.” He cautioned against any “deep state subversion” by the SEC staff, emphasizing the need to respect what he perceives as a “landslide victory of Big Crypto.” Concluding his statement, Stark declared a new era of “crypto-caveat emptor,” suggesting a shift towards a more hands-off regulatory approach.
