David Hirsch, the former head of the Cryptocurrency and Network Division at the U.S. Securities and Exchange Commission (SEC), has stepped down from his role.
In a LinkedIn post, Hirsch described securities trading as a “team sport” and expressed gratitude to his SEC colleagues for their collective efforts.
“As I often say, securities enforcement is a team sport, and that was certainly true throughout my tenure. Every success I was a part of was the direct result of collaboration and combined efforts towards a common goal. Thanks to all of you!”
— David Hirsch, former head of the Cryptocurrency and Network Division at the SEC
Hirsch did not disclose his next career move but mentioned that he plans to take a break and spend time traveling with his family.
Nine Years at the SEC
Hirsch served as an advisor to SEC Commissioner Caroline Crenshaw and worked extensively on law enforcement, digital assets, and cybersecurity issues. Throughout his nine-year tenure at the SEC, Hirsch provided training on digital assets and cybersecurity to fellow regulators and law enforcement officials. He started as a staff lawyer and eventually led the department responsible for overseeing crypto exchanges and decentralized finance (DeFi) projects.
New Role or Rumors?
Speculation arose when the meme coin project Pump.Fun announced that Hirsch would join them as Head of Trading. They claimed Hirsch had decided his regulatory job was no longer fulfilling and was embarking on a new chapter. Pump.Fun also alleged that Hirsch had launched over 100 coins and would now oversee the launch of over 1,000 coins per day for their new internal trading department. However, Hirsch later denied these claims.
Hirsch and the SEC's Role in Crypto Regulation
Hirsch took charge of the SEC's Cryptocurrency and Network Division in October 2022, during a tumultuous period for the crypto market. Several major crypto companies went bankrupt, and the collapse of the FTX exchange marked a low point for the industry.
Under Hirsch's leadership, the SEC initiated an aggressive enforcement campaign against several industry giants, including Kraken, Coinbase, Binance, and Ripple. These actions resulted in lengthy legal battles, with Kraken reaching a settlement after paying a $30 million fine.
What’s Next for Cryptocurrency in the U.S.?
Hirsch’s departure removes a significant advocate of strict cryptocurrency regulation from the scene. The question remains: who will lead the cryptocurrency division next?
The upcoming U.S. presidential elections in the fall could significantly influence the SEC’s future policies. A survey by Grayscale indicates that Americans are increasingly interested in cryptocurrencies, with 53% of respondents willing to vote for a candidate who understands digital assets.
The Biden administration is working to gain the support of voters who own digital assets, evident in recent initiatives like adopting spot Ethereum ETFs. Biden's primary opponent, former President Donald Trump, has positioned himself as the "crypto president," promising to end Biden's "war on crypto" and support the future of Bitcoin and other cryptocurrencies.
However, Gary Gensler remains the SEC Chairman and continues to view all cryptocurrencies, except Bitcoin, with skepticism. The future of crypto regulation may become clearer post-election, potentially improving under new leadership.