Several experienced enforcement attorneys are preparing to leave their positions within the U.S. Securities and Exchange Commission's (SEC) CryptoAssets Division and Cyber Division.
That's according to Fox Business reporter Charles Gasparino, who warned on February 9 that there had been an increase in the circulation of resumes from current SEC employees — a sign that many were looking to jump ship.
The report comes as undercurrents of discontent continue to emerge alongside assertions within the cryptocurrency industry that the agency's head, Gary Gensler, is overly restrictive with companies.
Fox Business journalist Eleanor Terrett recently reported that the SEC is seeking to move forward with a record $2.4 billion funding request, aimed at fortifying the agency by adding 170 jobs. A portion of this amount is allocated to the same unit facing potential attrition.
These appointments are said to be designed to strengthen the SEC's grip on the complex and evolving cryptocurrency market, despite industry backlash against what is seen as aggressive regulatory overreach by the agency — particularly in the field of decentralized finance (defi), where it has led The application of traditional securities laws presented significant challenges to players.
Speculation is growing about Gensler's future
Further complicating the issue of the loss of experienced staff, the political landscape leading up to the US presidential election has added further uncertainty.
Analysts believe that if President Joe Biden secures a second term after the 2024 presidential election, Gensler's presidency could extend into 2026. A victory for Donald Trump, the GOP front-runner, is likely to influence the direction of the SEC Again.
The entanglement of political outcomes with the SEC's leadership also raises additional questions about the neutrality and effectiveness of the SEC's regulatory strategies in the cryptocurrency industry going forward.
Traditionally, SEC chairs resign from their positions with a change in presidential party, as observed with the departure of Jay Clayton after the election in November 2020. Such a move is typically intended to make it easier for the incoming president to appoint a new SEC chair. Ensure that the Commission maintains a majority that reflects the ruling party.
Industry analyst MetaLawMan suggested that if a Republican candidate like former President Trump or an outsider like Robert F. Kennedy Jr. wins the upcoming election; The question becomes whether Gensler will adhere to this long-standing tradition.
MetaLawMan suggested that Gensler, whose term naturally ends in 2026, may resist resigning, breaking with historical norms.
According to him, this assumption poses a unique challenge, as there is no established precedent for a president firing an SEC commissioner “for cause” during a transition of power.
The lawyer believes that the outcome of this political chess game could have major implications for the cryptocurrency sector.
