David Hirsh, 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, Hirsh described securities trading as a "team sport," expressing gratitude to his SEC colleagues for their cooperation and collective efforts. "Every success I was a part of was the direct result of collaboration and combined efforts towards a common goal," he wrote.

Nine Years at the SEC

Hirsh 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, Hirsh provided training on digital assets and cybersecurity, including sessions for other regulators and law enforcement officials. He began his SEC career as a staff lawyer and later headed the division focused on crypto exchanges and decentralized finance (DeFi) projects.

Future Plans and Speculations

While Hirsh did not disclose his future employment plans, he mentioned taking a break to travel with his family. Speculation arose when the meme coin project Pump.Fun announced Hirsh would join as Head of Trading, claiming he would oversee the launch of over 1,000 coins per day. However, Hirsh later denied this claim.

Hirsch's Impact on Crypto Regulation

Hirsh took charge of the Cryptocurrency and Network Division in October 2022, during a challenging period for the crypto market. Several large crypto companies went bankrupt, and the collapse of the FTX exchange further destabilized the industry. Under Hirsh’s leadership, the SEC launched an aggressive enforcement campaign against numerous crypto companies, including Kraken, Coinbase, Binance, and Ripple.

Lawsuits against Coinbase and Binance led to prolonged legal battles, while Kraken settled with the SEC by paying a $30 million fine.

The Future of Cryptocurrency Regulation in the U.S.

Hirsh’s departure removes a significant advocate for stringent cryptocurrency regulation from the SEC. The question remains: who will lead the crypto regulatory efforts after his exit? The upcoming U.S. presidential elections in the fall could heavily influence this decision. A Grayscale survey revealed that 53% of Americans are willing to vote for a candidate who understands cryptocurrencies.

President Joe Biden's administration is striving to gain the support of digital asset owners through various initiatives, such as adopting spot Ethereum ETFs. On the other hand, former President Donald Trump, Biden’s primary opponent, has branded himself as the “crypto president,” promising to end what he calls Biden’s “war on crypto” and to secure the future of Bitcoin and other cryptocurrencies in the U.S.

However, Gary Gensler, who regards all cryptocurrencies except Bitcoin as securities, remains the SEC Chairman. The American elections may bring changes to the regulatory landscape, potentially easing the current stringent measures.