Potential Changes in Crypto Regulation PostSEC

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

**Table of Contents**
– Nine years at the SEC
– New role or rumors?
– The role of Hirsh and the SEC in crypto regulation
– What’s next for cryptocurrency in the U.S.?

In a recent LinkedIn post, Hirsh described securities trading as a “team sport” and expressed gratitude towards his colleagues at the SEC for their collaborative efforts towards a shared goal. While he did not disclose specifics about his future plans, he mentioned taking a break to travel with his family.

**Nine years at the SEC**
Hirsh served as an advisor to SEC Commissioner Caroline Crenshaw, focusing on law enforcement, digital assets, and cybersecurity issues. Throughout his tenure at the SEC, he conducted training sessions on digital assets and cybersecurity for fellow regulators and law enforcement officials. Starting as a staff lawyer, he eventually led the division overseeing crypto exchanges and decentralized finance (DeFi) projects.

**New role or rumors?**
There were speculations that Hirsh would join the meme coin project Pump.Fun as Head of Trading. The project claimed that Hirsh found his regulatory role unfulfilling and was ready for a fresh start. Pump.Fun suggested that Hirsh, who allegedly launched over 100 coins himself, would oversee the launch of 1,000 coins daily. However, Hirsh later refuted these claims.

**The role of Hirsh and the SEC in crypto regulation**
Hirsh assumed leadership of the division during a challenging period for the crypto market in October 2022. Amidst bankruptcies and the collapse of major players like FTX, the SEC intensified its enforcement actions against industry giants like Kraken, Coinbase, Binance, and Ripple. Legal battles ensued, with Kraken eventually settling with a $30 million fine.

**What’s next for cryptocurrency in the U.S.?**
Hirsh’s departure leaves a void in the industry as a proponent of strict crypto regulation exits. The future leadership of the cryptocurrency sector post-Hirsh remains uncertain. The upcoming U.S. presidential elections could influence this, with 53% of Americans expressing interest in candidates who understand cryptocurrencies. President Joe Biden’s administration aims to court digital asset owners, while former President Donald Trump, dubbed the “crypto president,” has pledged support for the industry. However, SEC Chairman Gary Gensler’s stance on cryptocurrencies, excluding Bitcoin, may impact future developments post-election.