David Hirsch, the head of the SEC’s crypto asset enforcement division, has resigned. He announced his departure in a LinkedIn post, concluding his nearly 10-year tenure at the agency. Hirsch led the digital asset enforcement team, handling numerous complex and high-profile cases in the crypto industry.
Hirsch Reflects on His Tenure
In his post, Hirsch expressed gratitude for the opportunity to work on investigations and pride in leading the Crypto Assets and Cyber Unit team. He acknowledged the support of many mentors, colleagues, and partners across various regulatory and law enforcement bodies.
Clarifying Rumors
Hirsch’s resignation sparked rumors that he had joined Pump.fun, a memecoin launch platform, as head of trading. However, Hirsch quickly dispelled these rumors, stating in a LinkedIn comment, “This claim by pumpdotfun is false.”
Hirsch shared his future plans, mentioning his excitement for new challenges and a break to travel with his family before his son heads to college in the fall.
SEC’s Enforcement Approach Under Hirsch
Under Hirsch, the SEC’s enforcement approach became more aggressive, contrasting with its traditionally more measured style. While the agency previously targeted misdeeds at regulated businesses, often leading to settlements, the charges against digital asset companies often threatened their existence, prompting them to take the agency to court. For example, Binance founder Changpeng Zhao is currently serving a four-month prison sentence in California for money laundering charges.
Stern Stance on the Crypto Industry
Hirsch maintained a tough stance on the crypto industry. Last September, he revealed his team was investigating other companies with activities similar to those at major platforms like Coinbase and Binance, indicating widespread compliance breaches in the industry.
Hirsch emphasized that the SEC’s interest extended beyond high-profile exchanges to include intermediaries operating “illegally,” such as brokers, dealers, and clearing agencies within the SEC’s jurisdiction but failing to meet their obligations.
He also clarified that DeFi projects would not evade the SEC’s scrutiny. “We’re going to continue to conduct investigations, we’re gonna be active in the space, and adding the label of DeFi is not going to be something that’s going to deter us from continuing our work,” he said.
Source: cryptopolitan.com
