John Reed Stark, a former chief of the SEC’s Office of Internet Enforcement, has made a dramatic pivot in his stance on cryptocurrency regulation. Stark is now calling for SEC Chair Gary Gensler to step down and halt all crypto enforcement efforts, citing the shift in political climate following Donald Trump’s election victory.
A Call for Change
In a series of posts on X (formerly Twitter), Stark tied his demands to Trump’s win, suggesting that the SEC should respect the election outcome by reversing its stance on cryptocurrency enforcement.
“SEC Chair Gensler should resign,” Stark wrote on November 13. “The SEC staff should prepare a spreadsheet of all crypto-related investigations, litigation, and rule-making, so the new chair can swiftly grind them all to a screeching halt. Like it or not, the people have spoken, and their will must be respected.”
This statement marks a significant departure from Stark’s previous support of strict regulatory oversight in the crypto sector.
“The People Have Spoken”
In another post on November 10, Stark reinforced his position, emphasizing the need to pause crypto enforcement following Trump’s landslide victory.
“The stark reality is that the people have spoken and the SEC should stop all crypto-enforcement, dismiss/settle all ongoing crypto-litigation, and Chair Gensler should resign,” Stark wrote. “President Trump’s victory was a mammoth landslide and it should be respected.”
Stark also addressed the recent resignation of Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. While dismissing rumors of misconduct, he supported the resignation, urging the SEC to reassess its approach to the digital asset industry.
A Shift in Stance
Stark’s recent comments contrast sharply with his earlier warnings about the SEC’s “regulatory onslaught” against crypto firms. Previously, he had been a vocal proponent of aggressive actions to rein in the cryptocurrency sector. His current rhetoric suggests a newfound openness to crypto’s potential and a recognition of the changing political landscape.
Speculation Surrounding Gensler’s Future
Gary Gensler, whose tenure as SEC Chair has been marked by stringent crypto enforcement, has fueled speculation about his possible resignation. Trump has publicly criticized Gensler’s regulatory approach and vowed to fire him on his first day in office. Trump’s administration has also pledged to position the U.S. as a global hub for cryptocurrency innovation, with some suggesting that Bitcoin could be adopted as a national reserve.
