Gurbir Grewal Steps Down As SEC Enforcement Director
The current Director of Enforcement at the U.S. Securities and Exchange Commission (SEC), Gurbir Grewal, is set to leave the agency. According to a Wednesday press release, Grewal will exit the commission on October 11, after serving in the role for the last three years. When he does step down, current deputy director of enforcement, Sanjay Wadhwa, will take charge as acting director of the SEC’s enforcement department. Sam Waldon, who is currently the chief counsel for the department, will then take up the role of acting deputy director. SEC Praises Gurbir Grewal for His Crypto Efforts The commission has lauded Grewal’s efforts so far, particularly, as it relates to crypto. According to the agency, the Grewal-led department recommended over 100 enforcement actions as a result of the increasing rate of noncompliance in the fast-paced crypto space. All of the recommendations were authorized by the SEC, including those against some of the biggest names in the industry. Meanwhile, SEC Chairman Gary Gensler has personally heaped praises on Grewal, thanking him for his time as the director of enforcement. Gensler recalls how he led the department of enforcement without fear or prejudice and was mainly concerned about protecting investors and ensuring that market participants acted in accordance with the extant securities laws. The SEC Chair issued a part statement, which reads: “Every day, he has thought about how to best protect investors and help ensure market participants comply with our time-tested securities laws. He has led a Division that has acted without fear or favour, following the facts and the law wherever they may lead.” The Tenure in View Grewal may have spent three years in his position as enforcement director. However, he recorded quite a number of achievements in that time. Per the press release, under Grewal, the SEC authorized over 2,400 enforcement matters that led to over $20 billion in disgorgement and civil penalties . The agency also released over $1 billion worth of rewards to whistleblowers. Recently, the SEC announced some more enforcement actions and settlements in the crypto space. Firms such as eToro, Mango Markets, and Galois Capital face enforcement action ahead of the end of the fiscal year.
Consensys Challenges SEC’s Concerns Over Spot Ether ETF
Consensys, a leading blockchain and Web3 software development company, has faulted the seeming apprehension that the United States Securities and Exchange Commission (SEC) has toward spot Ether exchange-traded fund (ETF). The regulator has repeatedly cited the potential fraud and manipulation risks that may be linked to Ethereum’s proof-of-stake system as the reasons for its concern. However, in a comprehensive comment letter, Consensys has reminded the regulator that its concerns hold no water. Detailing its view in a blog post, Consensys first explained how the security features of Ethereum outshines that of Bitcoin. Part of the statement reads: Furthermore, Consensys also mentioned some other advantages that Ethereum possesses over Bitcon. Some of those include its quicker block finality, a robust system to deter stakeholder dominance, penalties for validator rule violations. That is not to mention Ethereum’s superior environmental sustainability among other things, according to the company. Consensys then pointed the SEC in the direction of the spot Bitcoin ETFs it recently approved. The firm reminded the regulator of the sterling performance that those have put up since their January approval. It then added that the distinctiveness of Ethereum-based ETFs most likely makes them poised to garner more traction and possibly perform better. SEC Issues Ultimatum for Spot Ether ETF Approval Presently, it is unclear what the future holds for spot Ether ETFs. However, the SEC is set to make the all-important decision regarding them by May 23. As of publication, several firms, including Fidelity, Hashdex, ARK 21Shares, and many more have lined up applications with the SEC. However, the initial optimism around the applications appears to be diminishing. Many experts who, back in 2023, were high with hopes are now speculating that the commission may choose to deny applications. As the countdown to May continues, stakeholders can only hope that the regulator will issue a decision that could usher in a new era for Ethereum-based investment opportunities.
