This scenario could spark Gary Gensler’s resignation: Former SEC official

The United States securities regulator might completely u-turn its technique to crypto enforcement, depending on a key election in the United States in 2024, according to previous SEC official John Reed Stark.In an Aug. 13 tweet, the previous SEC Office of Internet Enforcement chief forecasted that a Republican President might dramatically move the crypto-regulatory tide, including the possible resignation of SEC chief Gary Gensler.There are currently a number of Republican candidates in the running. Former-President Donald Trump remains the most popular prospect among Republican voters, followed in a remote second by Florida Governor Ron de Santis and then by South Carolina Senator Tim Scott. Should a Republican be elected as President, according to Stark, Gensler would likely be replaced by crypto-friendly Hester Peirce– frequently described as “Crypto Mom.” Will the SEC Approve Any Of The Recent Bitcoin Spot ETF Applications?People often request my viewpoint on whether the SEC will authorize any of the current wave of bitcoin spot ETF applications, which is a essential and intriguing question.My take is that the present SEC will … pic.twitter.com/lPXebl03Y4— John Reed Stark (@JohnReedStark) August 13, 2023

Stark kept in mind Peirces history of dissent and opposition to many of the regulators crypto-related enforcement, and explained that if Peirce were to become the head of the SEC:” The world must expect that a lot of U.S. SEC crypto-related enforcement and most crypto-related SEC disturbance would grind to a shrieking stop. On the other side of the fence, Democratic Senator Elizabeth Warren has actually made a number of concerted efforts to split down on all kinds of crypto in the nation, going as far as forming an “anti-crypto army” as part of Senate re-election campaign.Until such a time when a Republican sits in the oval workplace, Stark stated it was unlikely that the regulator would become any more friendly towards crypto, anticipating that the SEC will decline the existing swathe of area Bitcoin ETFs for a variety of “engaging” reasons.Citing an Aug. 8 Better Markets SEC Comment letter, Stark shared that spot Bitcoin markets have a history of artificially inflated trading volumes, are highly concentrated within the hands of a couple of actors and rely on a small group of select entities to maintain the Bitcoin network. Source: Better MarketsDespite a number of market heavyweights from the world of standard finance, such as BlackRock and Fidelity lodging applications for a spot Bitcoin ETF item, Stark believes the SEC will ultimately turn down all of the exceptional filings.