David Hirsch, the former head of the Cryptocurrency and Network Division at the U.S. Securities and Exchange Commission (SEC), has resigned from his position.

Nine Years at the SEC

Hirsch served as an advisor to SEC Commissioner Caroline Crenshaw, focusing on law enforcement, digital assets, and cybersecurity. Over his nine-year tenure, he provided training on these issues to fellow regulators and law enforcement officials. Initially joining the SEC as a staff lawyer, Hirsch later led the department overseeing crypto exchanges and decentralized finance (DeFi) projects.

New Role or Just Rumors?

Speculation suggests Hirsch might join the meme coin project Pump.Fun as Head of Trading. According to Pump.Fun, Hirsch decided to leave his regulatory role to explore new opportunities. They claimed he would manage their internal trading department, aiming to launch over 1,000 coins daily. However, Hirsch has denied these statements.

The Role of Hirsch and the SEC in Crypto Regulation

Hirsch took over the division in October 2022 during a tumultuous period for the crypto market. Several major crypto companies went bankrupt, and the collapse of the significant FTX exchange marked a low point for the industry. Under Hirsch’s leadership, the SEC pursued aggressive enforcement actions against several industry giants, including Kraken, Coinbase, Binance, and Ripple. Notably, Kraken settled with the SEC by paying a $30 million fine, while Coinbase and Binance are engaged in ongoing legal battles.

What’s Next for Cryptocurrency in the U.S.?

Hirsch’s departure leaves a significant gap in the regulatory landscape. The upcoming U.S. presidential elections could significantly impact the future of cryptocurrency regulation. A survey indicates that 53% of Americans are inclined to vote for a candidate who understands cryptocurrencies.

“The administration of U.S. President Joe Biden is working to earn the loyalty of voters who own digital assets.”

Recent initiatives, such as the adoption of spot Ethereum ETFs, reflect this effort. Former President Donald Trump has also expressed support for the crypto industry, promising to end what he calls the “war on crypto” initiated by the current administration if re-elected.

Despite these political shifts, Gary Gensler remains the SEC Chairman, labeling all cryptocurrencies except Bitcoin (BTC) as securities. The outcome of the American elections may bring changes to the regulatory environment.

For more updates and in-depth analysis, stay tuned to Global Crypto News.

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