According to an Oct. 2 announcement, the United States Securities and Exchange Commission’s (SEC) chief enforcer, Gurbir Grewal, will step down on Oct. 11 after a stint distinguished by his aggressive policing of the cryptocurrency industry.
The SEC has not chosen Grewal’s permanent replacement but Sanjay Wadhwa, deputy director of the SEC’s enforcement division, will serve as acting director for the time being, the announcement said.
As the SEC’s chief enforcer, Grewal recommended more than 100 enforcement actions “addressing widespread noncompliance in the quickly growing crypto space, including against the operators of the largest crypto asset trading platforms in the world,” the regulator said.
Grewal’s abrupt departure has prompted speculation that the SEC may be preparing to take a softer approach to crypto.
In September, Democratic presidential nominee Kamala Harris broke her silence on crypto and said she wanted the US to be “dominant” in the industry.
“Perhaps the inevitable end to a campaign of unlawful harassment and misrepresentation resulting in many embarrassing defeats in court,” Jake Chervinsky, Variant Fund’s chief legal officer, said in an Oct. 2 post on the X platform.
Political pressure on the SEC has been mounting ahead of the November US presidential election. In July, Republican nominee Donald Trump pledged to “fire” SEC Chair Gary Gensler if elected.
In September, Gensler came under fire from lawmakers and agency members during a House Financial Services Committee hearing over his handling of crypto regulation in the US.
The crypto industry has been fighting back against tough enforcement ahead of the November election.
Backed by crypto firms and executives, primarily Ripple and Coinbase, Fairshake reported raising more than $169 million for the 2024 election cycle.
Grewal led the SEC’s enforcement unit for three years. He spent a total of 21 years at the agency, the SEC said.
“From recalibrating penalties and remedies to confronting emerging risks to holding issuers, insiders, and gatekeepers accountable, I am incredibly proud of all that we’ve accomplished,” Grewal said in a statement.
