Pressure mounts on Gensler

Some of SEC chair Gary Gensler's biggest defenders are seeing the writing on the wall.

• "SEC Chair Gensler should resign," former SEC attorney John Reed Stark wrote yesterday on X.

Why it matters: Unlike all the (millions?) of similar comments from the crypto crowd on social media, Stark's comment carries significance: He's long been a vocal defender of Gensler and the SEC's approach to crypto.

Flashback: In June 2023 Stark wrote on X, "my take is that the SEC is spot-on with their crypto-related enforcement efforts."

• He added that "no matter what the carnival barkers promise," crypto trading platforms are unquestionably "high-risk, perilous and inherently unsafe."

The big picture: There's no evidence to suggest that Stark — who spent 11 years as chief of the SEC Office of Internet Enforcement — has changed his view on crypto.

• Instead, his call for Gensler's resignation is his acknowledgment of a new post-election reality.

Zoom in: "The people have spoken and should be respected," Stark wrote yesterday. "The SEC's crypto-enforcement wave (which has been extraordinarily successful in the Courts) should stop -- and the SEC should instead refer crypto-matters out to other law enforcement and regulatory agencies."

• He predicted that the SEC would soon "pause" crypto-enforcement and rule-making actions, part of a step back to study the technological aspects of digital assets in terms of how they may fit a new regulatory scheme.

"And that's fair, given the election results," he added. "SEC Chair Gary Gensler should respect the landslide victory of Big Crypto and the SEC staff should not partake in any sort of deep state subversion. The people have spoken, it's crypto-caveat emptor going forward . . . and let the chips fall where they may."