The U.S. Securities and Exchange Commission (SEC) is going through a new leadership transition. Paul Atkins was appointed as the new president, succeeding president Gary Gensler. Gensler made key appointments before taking over as head of the agency. However, former SEC Internet Enforcement Director John Reed Stark criticized these appointments.
Problems with Gary Gensler Appointments
Gensler has been making internal appointments for senior positions in the weeks before he leaves office. It’s annoying that people who think like him are strengthening their positions while consolidating their position. “Gary Gensler is trying to run the SEC Enforcement Division in the shadows,” commented former SEC staff member John Reed Stark. Gensler promoted five staff members from the Applications Division to senior roles.
Stark stated that the promotions were not bad and criticized them in terms of speed and motivation. He noted that there are very few senior positions at SEC headquarters and that these roles are often filled over decades-long processes. The fact that these promotions are career civil servant positions makes it difficult to dismiss personnel.
“Gary Gensler is trying to run the SEC Enforcement Division from the shadows. Their actions are not only shameful, they are also scandalous.”
He also revealed that four of the five promoted staff had been running major crypto operations in recent years. This suggests that if new SEC Chairman Paul Atkins wants to investigate previous crypto enforcement actions, these senior officials could block those moves.
There are those who consider Donald Trump’s victory in the recent United States elections as a vote of confidence for the crypto industry. Trump, who declared himself the crypto president during the election campaigns, supported crypto supporters’ demand for re-nomination.
Following the victory, it appears that the presidential candidate began making important appointments to fulfill his promises. Alongside Paul Atkins, the appointment of David Sacks as Crypto Czar aims to drive policy changes that will help the industry.
Industry Expectations
Industry leaders hope that these initial steps will contribute positively to the market. For example, moves such as the review of Operation Chokepoint 2.0 led to the systematic exclusion of crypto firms from banks and the collapse of some banks.
The SEC’s new management and appointments mark a critical period for the regulation of the crypto industry. The speed and motivation of appointments are carefully monitored by players in the sector. These developments offer important clues about how the USA will shape the crypto markets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
