The former head of internet enforcement at the US Securities and Exchange Commission (SEC) recently defended the approach taken by current chair, Gary Gensler, for regulating the crypto industry.
He said that rather than making personal attacks directed towards the SEC chairman and the staff, people should focus on the facts and the law.
He went on to say that this tactic is flawed and not effective in a courtroom because it comes off as an attempt to rally the mob.
John Reed Stark is a former official of the US SEC and he recently took to defending Gary Gensler, the chairman of the regulatory body.
He called on the crypto community to stop the personal attacks directed at Gensler. Currently serving as the president of John Reed Stark Consulting, which is a cybersecurity firm, Stark had previously been part of the SEC.
As a matter of fact, he founded the Office of Internet Enforcement of the SEC and was its chief for about 11 years. For 15 years, he also served as an enforcement attorney of the securities regulator.
The crypto community has been criticizing SEC boss Gary Gensler because of the stance he has taken regarding crypto tokens.
According to Gensler, all crypto tokens are securities, with the exception of Bitcoin (BTC). Many have been concerned with this position because they believe it is a preconceived judgment.
But, Gensler had not given a direct answer about whether ether (ETH) classifies as security back in April when he had been questioned by Congressman Patrick McHenry.
The SEC chair had asserted that he would not make prejudgments. Some people have gone as far as demanding that Gensler recuse himself in the matter of crypto regulation.
Stark talked about this issue by using an SEC commissioner, Hester Peirce, as an example, who is considered pro-crypto.
The crypto community has labeled the said commissioner as a ‘crypto mom’.
Stark stated that even though Hester Peirce is pro-crypto, they would not ask her to recuse herself because of it and the same should apply to Gary Gensler.
He asserted that the SEC Commissioner had criticized all the efforts that the regulatory body had made in stopping the crypto wave and had also blamed it for the massive collapse of the market.
He went on to say that the pro-crypto stance of Hester were putting investors at risk, those that she is duty bound to protect.
Therefore, he said that she should back down from her ‘crypto mom’ duties, but she does not need to recuse herself.
Gensler has been criticized by a number of crypto proponents for regulating the crypto space via an enforcement-centric approach.
He had also been scrutinized for the meetings he had held with the executives of the now-defunct FTX crypto exchange, including its former CEO and co-founder, Sam Bankman-Fried.
According to Stark, both Peirce and Gensler deserve to be a part of the SEC and share their own perspectives.
In addition, they should also be allowed to decide whether they need to have meetings with crypto executives or not.