Ex-SEC Official Criticizes Agency over Shifting Regulatory Stance

The US Securities and Alternate Fee is present process a major transformation beneath President Donald Trump’s administration, paving the way in which for a serious regulatory overhaul. In an try to dismantle its enforcement rules, the SEC has ended main crypto lawsuits, sparking optimism. Nevertheless, former SEC official John Reed Stark criticizes this regulatory shift, addressing it because the company’s dying.

SEC Closes Crypto Lawsuits Sparking Criticism from Ex-Official

The restructured SEC is spearheading a serious regulatory overhaul beneath President Donald Trump. Consequently, the regulators settled extended crypto lawsuits initiated throughout former Chair Gary Gensler’s tenure. Whereas the fee’s transfer sparked widespread enthusiasm throughout the crypto area, former SEC official John Reed Stark expressed sharp criticism by way of his latest X post.

Notably, the company has resolved a number of crypto lawsuits involving Coinbase, Robinhood, Uniswap, and OpenSea. The SEC’s progressive strategy has invoked enthusiasm concerning a possible revolution within the US crypto regulatory panorama.

Nevertheless, Stark views this regulatory shift as an emblem of destruction. He deems it because the fee’s dying, stating, “That is How the SEC Dies.”

Are All SEC-Crypto Lawsuits Paused?

In a earlier submit, Reed highlighted the company’s latest regulatory shifts that resulted within the decision of main crypto lawsuits. Particularly, the SEC dropped the Coinbase and Robinhood lawsuits initially. And in a latest transfer, the regulators put an finish to the investigations surrounding Uniswap and OpenSea. As well as, the company has frozen the Binance lawsuit, marking not less than 5 “pauses” in crypto lawsuits.

The SEC’s Frantic and Unprecedented Rampage to Dismantle its Crypto-Enforcement Program Continues: This Time, Halting Two SEC Appeals Lifeless in Their Tracks (Buckle up XRP Military, the Ripple Attraction Has Acquired To Be Subsequent on the SEC Chopping Block)

The U.S. Securities and Alternate… pic.twitter.com/y6cMnhVRoi

— John Reed Stark (@JohnReedStark) February 20, 2025

These developments have considerably sparked anticipations on the potential settlement of the XRP lawsuit. Regardless of speculations from authorized consultants of a potential delay in the lawsuit, Reed believes that the Ripple case would finish subsequent. As well as, expressing ideas on the SEC’s potential transfer to finish all current crypto lawsuits, Reed acknowledged,

The SEC crypto-enforcement carnage has actually simply begun to litter the streets. My guess is that every one SEC crypto-related investigations have already been secretly “paused” and that SEC crypto-enforcement assets have already been shifted to different priorities.

SEC’s Regulatory Shift: A New Period or Demise?

“The U.S. Securities and Alternate Fee (SEC) continues its frantic race to remove all fragments, remnants and artifacts of its crypto-enforcement program,” acknowledged Stark. In response to the ex-official, the SEC’s present might result in the entire destruction of the fee. He posited,

It’s the proper storm on the SEC: A President who doesn’t belief the SEC; A crypto czar who has no respect for the SEC; And a DOGE Director Who hates the SEC. That’s not good for SEC employees.

Stark believes that Elon Musk’s Division of Authorities Effectivity (DOGE) will quickly restructure the regulatory company, presumably together with a discount in workforce. In a sarcastic tone, he posited that the present shift, together with the crypto lawsuits’ updates, might presumably pave the way in which for the regulator’s funeral.