Crypto Battle Looms at SEC: Trump's Team Set to Clash With Gensler's Picks

Crypto War at the SEC: Stark Predicts Gensler’s Handpicked Team Will Face Trump’s Wrath

John Reed Stark, former head of the U.S. Securities and Exchange Commission (SEC)’s Office of Internet Enforcement, has warned of potential conflicts within the SEC following Donald Trump’s election victory. In a post on social media platform X on Wednesday, Stark accused SEC Chair Gary Gensler of making last-minute promotions to secure influence over the agency’s future direction.

Gensler’s Controversial Moves

Stark stated:

With a rush of sudden ‘lame duck’ promotions, SEC Chair Gary Gensler has begun a shameful deep state crusade. Gensler’s actions are not just disgraceful, they are scandalous.

According to Stark, Gensler promoted five senior officers within the SEC’s Enforcement Division, four of whom have substantial experience in crypto enforcement. He criticized the timing, noting that such promotions typically span a decade, not a single month. As career civil service roles, these positions cannot be easily overturned by the incoming administration.

“SEC Chair Gary Gensler is clearly attempting to pilot the SEC Enforcement Division from the grave,” Stark added. He further claimed the promotions were conducted quietly without public announcements or press releases.

Incoming Conflict

Stark predicted significant clashes between Trump’s incoming administration, led by Paul Atkins as the next SEC Chair, and Gensler’s appointees. He speculated:

The marching orders to Chair Atkins from the White House and the crypto Czar will undoubtedly be to clean house and take names – and immediately order that all SEC crypto-related investigations, litigation, appeals and rule-making permanently cease and desist.

Stark expressed concern for the promoted officers, who he believes will be caught in a futile battle. “Gensler has thrown all five under the bus, compelling them to engage in a futile battle with future Chair Paul Atkins, which will ultimately result in their defeat. That is not just sad and disrespectful, it’s selfish and egotistical,” he said.

Implications for Crypto Regulation

This brewing conflict could significantly impact the future of cryptocurrency regulation in the United States. Trump’s pro-crypto stance may reshape the SEC’s priorities, potentially halting ongoing crypto enforcement actions and investigations. Stark’s warnings highlight the SEC’s internal power struggles and their potential to become a flashpoint in the evolving regulatory landscape.