The SEC's enforcement director is leaving. The news comes after a series of crypto legal setbacks for the regulator. Crypto pundits are speculating whether SEC Chair Gary Gensler may also leave the agency.
Enforcement Director Gurbir S. Grewal will leave the agency on October 11, the US Securities and Exchange Commission said on Wednesday.
Grewal, 21 years old Agency vetPresided over 100 enforcement actions against crypto companies since 2021. He is widely regarded as one of the key architects of the SEC's anti-crypto “regulation by regulation”. strategy.
“It's not uncommon for an SEC enforcement director to disappear like this — not be replaced on nine days' notice,” said Jake Chervinsky, chief legal officer at Variant, a crypto venture capital firm. Said On X.
Sanjay Wadhwa, Deputy Director of Enforcement, will act as Acting Director. It is not clear who the SEC will permanently promote to the role.
The news comes as Washington warms to crypto ahead of the US election in November.
Chervinsky couldn't resist taking a shot at the SEC for its widely criticized approach to crypto over the past few years.
“Perhaps the inevitable end to a campaign of illegal harassment and misrepresentation, resulting in very embarrassing defeats in court,” he said.
In 2023, the US Court of Appeals ruled that the SEC erred by denying permission to crypto fund issuer Greyscale to launch a spot bitcoin ETF.
Join the community to get our latest articles and updates
In August, the SEC largely failed in its long-running lawsuit that crypto payments firm Ripple Labs' XRP token sales violated securities laws.
After Gensler?
With Grewal's departure and political pressure mounting, crypto pundits are speculating whether SEC Chair Gary Gensler might also leave the agency.
Crypto investor Adam Cochrane Said At X, Grewal's short notice period and lack of replacement suggests that senior SEC staff are on the fast track.
“The writing is clearly on the wall that Gensler is out for another term in the administration,” he said.
Former President Donald Trump said he would immediately fire Gensler if he returned to the White House.
Vice President Kamala Harris did not comment on Gensler's tenure. President Joe Biden appointed Gensler to chair the SEC in 2021.
Other Democratic backers were less sanguine about Gensler's need to go.
“What you're leaving is worth a point in GDP growth,” billionaire investor and Harris supporter Mark Cuban posted on X.
In recent times Interview On Fox News, Cuban said he would be open to replacing Gensler and leading the SEC if Harris wins in November.
Grewal is not the only SEC chief to leave the agency recently.
In August, David Hirsch, head of the SEC's cyber and crypto enforcement division, left to join the Washington, DC law firm McGuireWoods.
There is Tim Craig News' Edinburgh-based DeFi correspondent. Reach out with tips at [email protected].
Related Topics Gensler Securities and Exchange Commission (SEC)
