Rumour Alert! Gary Gensler Might Step Down: Hester Peirce Could Take Over at SEC

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Cryptocurrency circles are buzzing with a juicy rumour: Hester Peirce, the esteemed ‘crypto mom,’ might take over the lead role at the SEC (Securities and Exchange Commission). This could really shake things up for the rules around digital money in the United States. Here’s a simple breakdown of what’s going on.

The Gensler Era and What Might Change?

Gary Gensler leads the SEC right now, and he’s been pretty tough on cryptocurrencies. He’s made life difficult for big digital money exchanges like Coinbase and Binance.

But wait, here’s where things get interesting. The spotlight has shifted to Hester Peirce, affectionately known as the ‘crypto mom’ due to her pro-crypto stance. If she indeed takes the reins, experts are predicting a potential paradigm shift in how the SEC approaches digital currencies.

What has Crypto Mom Done Before?

Remember that time back in February 2021 when Peirce stood up and waved the pro-crypto flag? Yep, she did just that, urging the US Government to get its act together and craft crypto-friendly regulations. She did this right when big businesses were starting to take an interest in Bitcoin. Many think she could bring a fresh and positive approach to how the SEC deals with digital currencies.

John Reed Stark, former Chief of the SEC Office of Internet Enforcement, says that the rules around digital money are becoming a dividing topic between political parties. This wasn’t always the case. People from both sides used to agree that digital money could be a problem. Now, things have changed, and there’s a divide in how people feel about the rules around digital money.

Partisanship and Crypto Regulation

Stark sheds light on an interesting development: crypto regulation has taken on a partisan flavour at the SEC. What once seemed like a bipartisan issue now appears to be a topic that divides along party lines. He highlights how figures across the political spectrum, including President Donald Trump and Secretary Hillary Clinton, once shared similar views on crypto being a potential menace.

Surprisingly, Stark notes that the SEC’s initial crackdown on crypto started under the leadership of Jay Clayton, a Republican-appointed chair. Despite the initial unity, the partisan divide on crypto matters has deepened over time.

The ‘Crypto Mom’ Takeover? What will happen?

So, how might this all play out? If a Republican is elected as US President in 2024, Stark speculates that changes might be afoot. He envisions a scenario where the SEC’s crypto enforcement efforts could shift gears. This could mean a more favourable stance on a Bitcoin spot ETF and other crypto-related regulatory actions.

With the possibility of Hester Peirce becoming acting chair under a new Republican president, the balance of power within the Commission could tip. And if her history of dissent and opposition to certain crypto-related actions continues, Stark suggests that we could witness a slowdown in crypto-related SEC actions.